WITHOUT THE RIGHT LEVEL OF PUBLIC AND EMPLOYERS LIABILITY INSURANCE, YOU COULD BE LIGHTING A FUSE UNDER YOUR BUSINESS. TOGETHER, WE CAN STAMP OUT THE CHANCES OF DISASTER.

A higher limit may be pertinent where a business has a high concentration of employees or third parties at their locations (or working on-site), or where a landlord has a high number of tenants. A widespread incident (e.g. a fire for example) could result in multiple casualties (this is known as your accumulation risk).

Potentially yes, where the claimant is younger or has an above-average salary the potential for increased settlements following injury. The age is relevant as the length of remaining service forms part of the claim’s settlement calculation.

Public Liability insurance has become an important part of doing business, and an increasing number of contracts require parties to hold minimum levels of cover. This is especially true when dealing with public sector bodies, which typically require £10m be held by anyone working for, on behalf of, or in partnership with them. Industry bodies may also stipulate minimum insurance requirements for their members, particularly those associated with the building trade. Businesses should therefore review their obligations and ensure they are meeting minimum requirements.

However, minimum levels requested by other parties have very little bearing on an organisation’s actual needs.

It’s important to carefully consider the possible scenarios where your business activities could cause damage or injury. Hazardous locations and higher risk activities, working around valuable assets and the provision of critical components are all likely to result in higher claims frequencies and values.

Certain industries and territories are also known to be more litigious or generally award higher damages. For example, the United States and Canada present notably higher exposures, and some PL policies may include limitations on claims from those jurisdictions.

Thinking should not be limited solely to your immediate dealings, but also the end use of a product or service.

For example, the potential liabilities of a metal bolt manufacturer are significantly higher if the bolts are ultimately used within a safety critical part of a vehicle or airplane.

Many PL policies include some common policy terms to be aware of. In particular, while public liability is written on an ‘any one occurrence’ basis, products liability is typically offered as an ‘aggregate’ limit of indemnity. This means that the limit of indemnity applies across all claims during the policy term, not each claim in isolation.

Product-led businesses will therefore need to consider higher limits of indemnity in order to adequately manage product-related risks.

Other common limitations may relate to exports to the United States and Canada, or products for use in aircraft and activities involving radiation.