Combined Liability Insurance

If your business encounters members of the public, public liability insurance is crucial. This type of insurance will protect you against compensation claims for injury or damage made by clients, customers, suppliers or other third parties. The cover typically protects you against injury caused to a third party, or any damage to their property.

Public Liability Insurance takes into account several factors, such as, your trade, working practices, number of workers, and turnover.

Public liability Insurance also covers the employer for the wrongdoings of their employees where they are held liable in law. This is called vicarious liability.

When looking at this type of insurance there are several additional factors to consider:

• Is any work performed at height?
• Do you perform any work at depth?
• Is there use of heat equipment?
• Do you operate at high-risk locations?

Our specialist liability team at JMP are experienced in supporting you when setting up this type of insurance policy and will guide you if you are unclear on any of these terms or how they might affect your risk.

If your company employs staff, whether they are permanent employees, temporary employees and/or subcontractors (see the difference between subcontractors below), you are legally required to have employer’s liability insurance. This policy will cover compensation claims made by a member of staff it they have suffered illness or injury whilst at work.

The fine for trading without appropriate Employer’s Liability Insurance cover in place can be up to £2,500 per day!

Subcontractors are separated into two categories:

• Labour only subcontractors working under your instruction and direction. These subcontractors are treated as employees and as such, you are legally required to cover them under your Employers’ Liability insurance
• Bona fide subcontractors these are professionals who trade under their own conditions, you may pay them by invoice to complete a particular job. This type of subcontractor is not treated as an employee. Although you need to need to ensure that they carry their own Public Liability insurance to protect yourself from any contingent liability!

When you take out Product Liability Insurance you are protected if one of your customers suffers damage as a result of a faulty product sold by you. You can still be liable even if you haven’t manufactured the product itself! This policy is especially important to businesses who operate in retail and technology sectors.

If your business imports goods and/or has a complex supply chain, this needs to be factored into the policy. This is where JMP’s expert team come into their own, providing clear guidance on the type of cover that is right for your business. We understand that there may be several steps before a product you are retailing reaches you, and some of these may be within jurisdictions where records are not kept to the standard required, it can sometimes be difficult to even trace the actual manufacturer.

Specialist Liability
There are several different ways in which liability cover can be enhanced even further to protect your business, such as:

• JCT 21.2.1 Insurance This insurance can be added to your policy to protect you against expense, liability, loss, claims or proceedings that can arise from non-negligent damage to a property due to collapse, subsidence, heave, vibration, weakening or removal of support, or lowering of groundwater.
• Efficacy This type of cover insures the failure of an item or service that you have provided to perform an intended function. Particularly important for trades involved with fire, security, or electrical contracting.
• Professional Indemnity insurance If you undertake design, engineering, or certification work, this type of cover can protect you from associated risks they bring.