Understanding liability insurance
Whether you're running a farm, diversifying into a new business venture, or employing staff, having the right liability insurance in place is essential. But with different types of cover available, it can be difficult to know what protection you need and when. Graham Nicholls, Technical Leader, explains the difference between public liability and employers’ liability insurance.
Public liability
Public liability insurance offers protection if your business is deemed negligent for an incident and a member of the public makes a claim for personal injury or property damage against you.
Cornish Mutual provides public liability insurance as standard as long as your business activity is accurately described to us. It offers clear benefits in the following situations:
- When your own business premises are visited by members of the public, customers or clients, including holiday lets and camping sites.
- When your business organises events or activities attended by members of the public that you have advised us of.
- When you run a business from your home and people visit your home for business purposes.
- If, in the course of your business activity, there is potential for you to cause personal injury or damage to third party property.
Public liability insurance covers anyone who you interact with as part of your business, apart from employees. As it does not cover employees including any temporary or casual staff, volunteers, students or people on work placements, you may also need employers’ liability insurance.
Employers’ liability
As an employer, you are responsible for protecting the health and safety of your employees during working hours. No matter how careful you are, workplace injuries happen and may result in a claim. In the case of occupational diseases, claims can happen many years down the line.
Employer's liability insurance for most businesses is a legal requirement under the Employers’ Liability Act 1969. It covers the damages and legal costs for which you are legally liable when a current or ex-employee suffers injury or illness while working for your business. In some instances, the policy also covers the cost of legal representation in relation to any HSE prosecution in the event of a serious injury or fatality.
The policy covers anyone working for you in connection with your business, and includes:
- Full-time and part-time employees
- Contract, casual and seasonal employees
- Labour-only subcontractors
- Temporary staff, apprentices and volunteers
- People taking part in work experience or training schemes
To ensure you have the appropriate cover in place it is important to disclose all business activity. If you have any questions or would like to discuss the cover you currently have in place, please call our Member Services team on 01872 277151.
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