Liability insurance

Seek specialist advice

Businesses are operating in an increasingly litigious environment where people are more inclined to seek compensation. The implications of a liability claim against your business could be huge because successful claims can sometimes lead to damages of millions of pounds being awarded against you. That is on top of all the legal fees. For most small businesses, this could spell financial ruin.

Business owners can also be held personally liable and even face criminal charges if they are found to have been negligent.

The importance of taking out adequate insurance cover

To protect yourself and your business, getting adequate insurance cover is vital. It is worth consulting your insurance broker to find out which types of insurance, and what levels of cover, are appropriate for your business.

You can select a broker on the British Insurance Brokers' Association (BIBA) website - Opens in a new window or search for a broker on the Institute of Insurance Brokers (IIB) website - Opens in a new window.

Insurance brokers and advisers are regulated by the Financial Services Authority (FSA) and you should make sure that your adviser has FSA authorisation. Check that an insurance broker is regulated by the FSA on the FSA website - Opens in a new window. If you choose to deal directly with an insurer, it's worthwhile checking that they are a member of the Association of British Insurers (ABI). Check that an insurer is a member of the ABI at the ABI website - Opens in a new window.

Premiums could rise at any time, so taking steps to reduce the likelihood of a claim by managing risks is an important way to keep costs down. Read our guides on risk assessment - an overview and how to set up a health and safety management system.

Use our interactive Health & safety performance indicator tool to find out how well you're managing your health and safety.

Subjects covered in this guide

• Introduction
• How liability insurance works
• Employers' liability insurance
• Public liability insurance
• Product liability insurance
• Insurance against pollution damages
• Property owners' liability insurance
• Professional indemnity insurance
• Directors' and officers' liability
• Seek specialist advice
• Here's how I checked what insurance I need

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