Guide

Liability insurance for your business

Introduction

Liability insurance is designed to protect your business against certain legal costs.

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.

The person or business responsible will also need to pay legal costs, including the claimant's.

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

This guide explains how liability insurance works and how it is sold and priced.

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