Liability insurance

Introduction

If someone is injured or their property is damaged, the person or business responsible may be sued and held legally liable for the injury or property damage. Where legal liability is established, damages will be awarded to the claimant to compensate them for their injury or the damage to their property. Where damages have been paid for an injury, the NHS is entitled to recover costs for hospital treatment, including ambulance costs. The person or business responsible will also need to pay legal costs, including the claimants'.

Liability insurance is designed to protect your business against these costs.

If your business has employees, it is likely that employers' liability insurance is compulsory. However, there are a few instances where insurance is not compulsory.

This guide explains what cover each type of liability insurance offers and how liability insurance is sold and priced.

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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