Public Liability Insurance
Public liability insurance is one of the most important elements of any industrial or commercial insurance policy and can make a huge difference to the financial stability of a company. Although not yet required by law in the United Kingdom, public liability insurance is strongly recommended for all companies who have any level of interaction with non-employees, be they clients, contractors or any other third party. This can include a business which has customers or clients come on-site, or a business which sends its employees out to other sites, businesses or residences. Many customers and clients will now request to see the public liability certificate of a given business before agreeing to any professional or customer relationship with them; others will simply assume that a public liability policy is in place.
Protection
Far from being an unnecessary expense, public liability insurance can protect a business from having to pay out huge fees to any third party who makes a claim against them for property damage, injury or death that may have occurred whilst on site or been caused by an employee. Claims can range from medical costs attributed to a minor injury: perhaps caused by falling or slipping whilst on the business' premises; or the repair or replacement of property damaged: perhaps a piece of furniture broken by an employee whilst visiting a client or a mobile phone dropped whilst on site. The policy should cover any damages and legal costs (for both the policy holder and the claimant if the case is awarded in their favour), as well as any loss of earnings or future loss of earnings caused by the claim.
Documentation
Once the policy has been taken out and the public liability cover certificate has been supplied it is recommended that the certificate and supporting documents be stored somewhere safe. Because some claims may take time to eventuate (such as could occur if a client or customer contracted an illness or disease whilst on site) it is a good idea to retain the certificate and any renewals for several decades. It is also worth noting that pollution produced by companies that subsequently cause damage or injury is not necessarily covered by public liability policies and should be taken out separately; some insurance companies offer pollution cover that includes financial repatriation for clean-ups and medical expenses.
Professional Indemnity Insurance
Although not strictly a part of the public liability policy, the professional indemnity insurance policy can also be a good investment to make. Professional liability applies to any person who provides a public service or custom product to a client or the general public, for instance accountants, engineers, architects, surveyors and designers. If the service or product provided by such a professional causes damage or injury, if the professional in some way instigates a breach of copyright, confidentiality, warranty of authority, or statutory duty, or if the professional commits an act of dishonesty, slander or libel, the professional liability policy will cover any costs accrued or brought against them. Professional liability insurance usually extends to cover any employees of the professional who takes out the cover.
Product Liability Insurance
In a similar fashion, product liability insurance is strongly recommended even though it does not generally fall into the realms of public liability. Product liability, as defined by the Consumer Protection Act 1987 (United Kingdom), protects both the manufacturer and the consumer from financial costs accrued as a result of a faulty or harmful product. For any industry that provides products to clients or customers failing to invest in a product liability policy could result in severe financial losses or even bankruptcy.