In this blog, we’re going to be walking you through the definitions of Public, Products and Employer’s Liability Insurance and what each of them cover.
To quote a well know paint brand, they “do exactly what it says on the tin”…
Public Liability
Public Liability may also be known as Property Owners Liability, in connection with property owners policies.
Public Liability cover will provide costs and settlements if you are deemed to have inflected personal injury to, or damaged property belonging to a member of the Public.
This cover is not a legal requirement, however we would recommend that any company that comes into contact with the public carry this policy. Limits can vary with the minimum now being around £1,000,000, but they can be as high as £40,000,000 if the company works with government bodies. In the Sussex area, local councils can request £10,000,000, but we would expect most to carry £2,000,000 as this is a seemingly standard limit when a package is taken out.
Cover is normally on an Any One Claim (AOC) basis, which means each claim will have a limit of its own, set at the limit of indemnity.
Products Liability
This is often packaged with Public Liability, but they are not exclusively a pair and are not the same.
Products Liability cover is used by those who are involved in manufacturing, distribution, supply or retail of products that are available to the public. They can be seen to be at fault if damage is to occur from a Product they are seen to have been responsible for.
As with Public Liability, this is not a legal requirement, but we would recommend that any company that sells products to carry this cover. Once again, limits can vary and when packaged with Public Liability the limit is normally matched.
Cover is normally on an Aggregate basis, which means each claim will come out of the limit of indemnity until that limit is exhausted.
Employers‘ Liability
Employers’ Liability provides cover if an Employee claims they have an injury or illness that can be traced back to when they were working for, or worked for a company.
For example, claims relating to asbestos exposure are still being made even 20 years on after the event.
Cover is normally on an Any One Claim Basis, meaning each claim will have a limit of its own, set at the limit of indemnity.
Employers Liability, unlike Public and Products, is a legal requirement. This is set out in the Employers’ Liability (Compulsory Insurance) Act 1969. As stated in HSE 40, if a company employs even one person each day without the cover, this can bring fines of up to £2,500 against the company. (*1)
Cover is normally granted at £10,000,000, with a certificate noting the following:
‘The minimum amount of cover provided by this Policy is no less than £5 million’, as the law states that you must be insured for at least £5 million. (*1)
The policy schedule will usually show the full limit which will normally be £10,000,000, but this can be brought at a higher level for additional premiums.
Exemptions and the Law (*2)
In HSE40, there are a few exemptions from this, including:
(*1) https://www.gov.uk/employers-liability-insurance
(*2) www.hse.gov.uk/pubns/hse40.pdf
If you have any questions or would like to discuss Public, Products and Employers Liability Cover and how Omni Davis can help you find the right cover, please contact us on:
Tel: 01403 785775 or 01243 864018 Email: info@omnidavis.co.uk.
