Guide

Liability insurance

Specialist insurance advice for your business

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.

Find a broker with the British Insurance Brokers' Association (BIBA).

It is worthwhile to check if an insurance provider is a member of the Association of British Insurers.

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 .

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 managing the risks in your business and set up a health and safety management system.