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What’s the difference between employers’ liability insurance and public liability insurance
Question MarkAll liability insurances are designed to protect you and your business against risks as a result of running your business normally – the insurance makes sure the business is protected against accidents and incidents you probably won’t even be able to imagine.
The type of liability insurance you need will depend on the nature of your business. When you are starting out you may not have employees, but if you do then the first and most important kind of liability insurance to put in place is employers’ liability insurance.
Employers’ liability insurance
Employers’ liability insurance is a type of liability insurance that protects you, as an employer and your business, against a claim for compensation for injury or illness suffered by one of your employees during the course of working for you. It covers you against claims by employees who get sick as a result of their employment, even if it is a long time after they worked for you.
Unlike other kinds of liability insurance, employers’ liability insurance is compulsory in law. You will need to display your current insurance certificate in your workplace and you could be fined if you do not have the insurance you need to comply with the law.
Public liability insurance
Public liability insurance on the other hand, is voluntary, but even so, if you have contact with the public during the course of your normal business practice, then you will need public liability insurance in place. As well as claims from members of the public arising from accident, injury or illness as a result of contact with your business, public liability insurance also protects your business against claims arising from contact with your business made against you by other businesses.
It will cover you for claims for compensation from accidents, illness or injury arising from direct contact with your business and its activities. If you have members of the public coming to your business premises for any reason, or if the nature of your business put you into contact with the public, then it’s advisable to have this type of cover.
Do you need them both?
Employers’ and public liability insurance both protect your business against risks you can’t predict. They are almost always sold together and often as part of a larger business insurance package. Here at constructaquote we work hard to make sure you get exactly the right kind of insurance, with the right level of cover and at the right price for your business.
This guide is part of our series on employers liability insurance, for product information, links to more guides or to get a quote, visit our employers liability section here. You can also call our UK based sales team on 08081 686868.