This cover is designed to protect your business from claims made by employees and third parties arising out of bodily injury or damage to property as a result of your activities.
HLT is one of the most complicated areas of insurance and great care needs to be taken when arranging cover to consider all of the standard exclusions to make sure that these do not apply should you submit a claim.
There are three main types of cover under this heading as follows:
- Employer’s Liability: covers the legal liability of the business for claims from employees for bodily injury arising out of their employment. This cover is required by law and directors can be fined for failure to comply with this legislation.
- Public Liability: covers the legal liability of the business for claims for bodily injury other than to employees or damage to property arising out of your activities at your premises or elsewhere where you are carrying out your work.
- Product Liability: again covers the legal liability of the business for claims arising from bodily injury or damage to property caused by any of the products or services supplied by you.
The limit of indemnity is specified in each policy which represents the maximum amount the insurers will pay in respect of any one claim. As far as product liability is concerned the limit of indemnity is not only the maximum amount insurers will pay for any one claim but also the maximum amount they will pay in any one period of insurance. In some circumstances, the insurers will apply the limit in any one period to other policies where they will use the words “any one claim and in the aggregate”.
Safeguard your business from a threat of liability, contact us for a quotation. You are able to select the limit of indemnity to apply to your policies. The standard limit for employer’s liability covers is £10 million but this may need to be increased if you have a lot of employees working in a small area. We can advise you on this. As far as public and products liabilities are concerned, our team will help you select a suitable figure as this will vary depending on the nature of your business and the requirements of your clients and customers.
Whilst insurers are not able to exclude any claims under an employer’s liability, there are many standard limitations for the other covers. Examples of these are:
- Excludes liability to property in your custody or control.
- Excludes property being worked upon
Let’s now take a look at some of the trades affected by these:
- Building & Construction
- Freight Forwarders
- Export Packers
- Motor Trades
- Haulage Contractors
- Repairers & Refurbishers
- and many more
Wordings are available to cater for each of these business sectors and our experienced staff will be able to help you choose the right cover.
The premiums for liability insurance are calculated on the wages and turnover and on most policies insurers will use estimates for this purpose. However, at the end of the year, they will ask for the actual figures and adjust the policy accordingly. You need to be aware that some insurers will charge a percentage of the premium at the outset (say 80%) which means that you will have a 20% charge at the end of the year. This is a method of keeping the first premium low but locking you in at future renewals. Beware!! Give us a call and we will advise you on suitable cover for your business.