Posts Tagged ‘liability insurance’

Business insurance for the self-employed

Tuesday, October 20th, 2009

If you have been self employed in some capacity, you will probably have considered some type of insurance cover for your business. i used to believe that my home insurance was adequate cover, when working as a freelancer. Luckily I never had to put this policy to the test, or else it could have been very embarrassing.

Office insurance cover is an absolute must, if you want to stay in business indefinitely. It is also a way of gaining credibility with your customers, as it creates the impression of a ‘level playing field’. It won’t be a case of one rule for one person and one for another. The law sees you as no different to the large corporate establishments employing 50,000 people.

Most contractors in my sector, the IT industry, are required by law to have the correct insurance in place. Even if you are a sole trader, you would have to set up a limited company. With this limited status, comes a need for special limited liability insurance, which has two clearly distinct areas to consider:

1. General liability: covers all damage that you may cause whilst on the employer’s premises, extending to injury or damage to a member of the public.

2. Professional liability: covers errors and omissions arising whilst in the course of the contract. Using my business as an example, cover may help me in the event that i made a mistake using an online library without a licence.

If you use a van for day-to-day business, you will need a different insurance cover. Specific business vans insurance is available and is tailored towards the insurance of the precious cargo contained within. Some of the benefits that you should expect are:

1. 24 hour breakdown recovery: covers the breakdown and recovery of your vehicle over a twenty four hour period.

2.Replacement vehicle: if you van is involved in an accident, it will be replaced as soon as possible.

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Liability Insurance For Autos

Sunday, June 14th, 2009

Auto insurance is the kind of insurance that almost everyone should have. Many say that if you somehow get caught without having it, then you can really end all messed up.

There are a lot of states around that will not permit vehicle registration without you having proof that you have the present insurance for the vehicle. But for those who have their vehicles straight up, they can go for liability insurance for their preferences.

Despite it’s luxurious cost, liability insurance is a must in any coverage of the automobile you have purchased. This can be utilized each time you may get caught in an accident that you might be responsible for, or getting your car damaged or even when your life is risked.

Without the insurance, you would spend on the damage on your own. But if your have the liability insurance, the company can pay for you, regardless if there are still some deductibles that you have to take care of. This all depends on the kind of policy and the service of the insurance company you have chosen.

If for example you just bought your automobile sole liability insurance and you got into a car accident, you will be luckier if the other car owner has a libility insurance as well. With this, their insurance company will pay for all the damage caused. But if they don’t have one, nothing can stop you from putting things into legal matters or they can just buy the liability insurance, that is if they have enough money.

That’s why it is very important to have your vehicle fully covered although it can be a bit expensive. As your car gets older and becomes of higher worth to you, you may consider it better to have a liability insurance for your car.

It is a good move to anticipate and be prepared on whatever may happen. If you get covered with the proper insurance, you’ll be grateful for a lifetime.

Article by Van T and read more about him here.

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Car Insurance Is Available Online

Wednesday, January 14th, 2009

Before getting an online auto insurance policy, there may be a few facts about this seemingly cheaper coverage you need to be aware of. Auto insurance is required for drivers in most states in the USA; however, the enforcement requirements do vary from one state to another. The importance of your becoming familiar with the auto insurance regulations in your state can not be understated.

If this is the first time you are taking out auto insurance coverage, it is best to make yourself familiar with the related terms and conditions in this type of insurance.

Knowing about the various types of insurance coverage such as uninsured driver coverage, liability, and collision coverage and the related factors of each will help when you are seeking the least expensive online auto insurance.

As you are looking for insurance for your car, you will frequently see the term of liability insurance come up. If a policy holder has liability coverage, it takes care of any claims made against the policy and anyone else who is driving the insured vehicle, if they are not living at the same address as the policy holder. People who are living at the same address as the policy holder have to be specifically added to the coverage on the policy. When there is liability coverage, it provides coverage of a fixed dollar amount for damages to the injured party; there is combined single limit coverage or split limits coverage offered.   

With the combined single limit policy, property damage liability coverage and bodily injury coverage are joined together under one policy. Property damage coverage and bodily injury coverage will be covered seperately by split liability coverage under the split limits policy. 

The uninsured driver coverage of a policy is meant to cover damages the insured party suffers which are caused by the uninsured party. If you happen to be involved in an accident with an uninsured driver, your insurance company actually becomes the insurance company of the uninsured driver if your insurance policy includes uninsured driver coverage.  

Collision auto insurance coverage is something that has to be decided upon while buying the insurance for your automobile. This policy term will pay for repairs in the event where your vehicle is damaged in an accident. When the vehicle is not repairable, the collision coverage will pay you the current cash value of the damaged vehicle. Collision coverage is not something that is mandatory for you to have, it is an optional service you may add to your insurance plan, but it can really be a lifesaver when there is damage to your vehicle.  

As you are attempting to find the cheapest online auto insurance, you will come into contact with some different terms, policies, and concepts. If you do not have the correct knowledge about these policies, terms, and concepts you will not understand which type of coverage is best for you and you will have a hard time deciding which ones you need to get. It helps you to know something about the varied terms and policies that can be involved in your auto insurance.

Although it is necessary to have car insurance to drive legally, the protection offered by it is worth the effort it takes to get insurance.

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Business Insurance Explained

Sunday, October 26th, 2008

What a very confusing subject !. There seems to be a whole range of products labelled public liability insurance, employers liability insurance and a fair few other varieties of liability insurance. There is considerably more uncertainty concerning what precisely is optional and what the law demands. This article is intended to simplify liability insurance in order that we can all purchase a product to fit our needs and protect our business against litigation from members of staff, clients or the general public. Let’s start by talking about the more common types of liability insurance.

Employers Liability Insurance

An employer is responsible for the health and safety of their employees while they are working. Your staff may be harmed whilst working or they, or your former employees, may develop an illness as a result of their endevours whilst working for you. They could try to claim compensation from you if they believe that you are responsible. The Employers’ Liability (Compulsory Insurance) Act 1969 insists that you have a certain level of insurance protection against claims by employees past or present.

Employers’ liability insurance will enable you to pay any compensation that is awarded to injuries or illness to your employee’s whether they happen off or on site. Incidentally, any injury or illness as a result of motor accidents that occur while your employees are on company business could be already covered by your car insurance.

The National Health Service are likely to claim hospital treatment costs and ambulance costs whenever compensation for personal injury has been claimed.

Members of staff injured because of the negligence of an employer can seek damages even if the business should go into receivership or liquidation.

According to UK law, employers in the UK must take out ELCI (Employers Liability Insurance) and have cover of at least £5 million. Most insurers offer a minimum of £10 million cover. ELCI must provide cover for all of your employees in the United Kingdom.

If your business is not a limited company, and you are the only member of staff or your staff consists solely of close family members, you need not purchase ELCI. Limited companies with a single employee, provided that the employee owns at least 50% or more of the shares in the company, are also exempt from compulsory Employers Liability Insurance.

Public Liability Insurance

Public Liability Insurance covers any awards of damages given to a member of the public because of an injury or damage to their property that can be blamed on you, your business or your staff. It also offers cover against any related legal costs and expenses together with hospital treatment costs (together with any associated ambulance costs) that the NHS might attempt to claim from you.

Premiums vary according to the type of business you run, turnover of the business and the number of employees you have.

Some professions, for example horse riding schools, are legally forced to have public liability cover. It is also likely that some of your customers or potential customers require proof of you holding public liability insurance before they will do business with you.

Product Liability Insurance

In product liability insurance (PLI) terms, a product is any physical item that is given away or sold.

According to the Consumer Protection Act of 1987, products have to be “fit for purpose”, claimants may attempt to claim from you initially, even if you did not manufacture it. You would be open to compensation claims if:

  • your business’ name is on the product – ie the manufacturer made it for your brand
  • your business repairs, refurbishes or changes it
  • you imported it from outside the European Union
  • you cannot clearly identify the manufacturer
  • the manufacturer has gone out of business

If none of the above applies, liability lies with the manufacturer – or the processor where the product involves parts from multiple manufacturers.

Property Owners Liability Insurance

Property owners’ liability insurance enables you to meet any damages and costs awarded to a member of the public if they suffer an injury as the result of an accident on, or linked to, your premises. This might include costs of treatment in hospital and ambulance charges claimed by the NHS, if somebody is awarded compensation for personal injury.

In general, it’s a sensible idea to make sure that property owners’ liability is included in your business insurance – you might find it included within  contents insurance.

Professional Indemnity Insurance

If your business involves selling your skills or knowledge, you might want to consider purchasing professional indemnity insurance.

The product covers your company against claims for compensation brought by a client if you have made errors or are found to have been negligent in some or all of the services that were provided to them. Professional indemnity insurance will also cover any legal costs.

Most advisers have professional indemnity insurance in place. If you are an accountant, lawyer or financial adviser, then you are required by law to carry professional indemnity insurance. Professionals such as architects, consultants, advertising and PR agencies, and designers often opt for such cover as well.

Business Insurance

Many self-employed tradesmen or owners of small businesses will find that there are liability insurance products that are designed specifically for their particular trade. These products are marketed under a number of labels such as business insurance, small business insurance, tradesmans insurance or self employed liability insurance. These offerings will normally incorporate a variety of individual sections including employers and public liability, combined with appropriate sections of office insurance, professional indemnity and legal expenses. A business insurance policy should offer substantial savings when compared to buying the individual components separately.

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Liability Insurance – A Mystery Explained

Tuesday, October 14th, 2008

As an employer or business owner, you have a legal responsibility towards your employees, customers and the general public. You risk being held liable and could be sued if a member of the public or an employee is injured because of your breach of duty or negligence. If their personal injury claim is successful, you could also face a bill from the NHS for refund of hospital treatment costs (including ambulance costs if and when appropriate).

Basically, liability insurance is formulated to pay any compensation and legal costs that might happen if someone is found to be at fault. If you employ staff it is most likely that you will be required to take out employers’ liability compulsory insurance (ELCI).

ELCI forces any employer carrying out business in the United Kingdom to provide insurance against their liability to their employees for injury or disease sustained whilst in the course of their employment in the United Kingdom. It provides greater security to companies against penalties which might otherwise result in financial difficulty, and to members of staff that resources will be on hand as compensation even if firms have gone bust.

How are liability insurance premiums calculated ?

The cost of insurance – normally called the premium – is typically calculated utilising a “book rating”. A book rating is worked out by starting with an initial charge, which includes the insurance company’s costs and reflects their appetite for your profession – if they want your type of business, the rate will be less than if they don’t.

The price is also calculated on the insurer’s opinion of the level of risk related to a particular profession or industry area.

The policy cost will be adjusted by factors including your claims history, the size of the perceived risk and their estimation on the possibility of any claim being lodged against you.

The safer your workplace and the fewer claims you have made, the lower the policy should be.

Premiums also include results from other similar professions by amalgamating both good and bad – a small business with a good record may be adversely affected by this. Your own approach to risk management plus your safety record can minimise the effect of this.

With employers’ liability, the exposure risk is calculated whilst taking into account the number of members of staff and the size of the payroll. Additionally, there are further factors that affect how risk is assessed.

For public and product liability the insurance risk is based on the turnover of your business and factors including whether you carry out your business away from your premises.

What is covered by public liability insurance

Insurance for public liability insures against any damages and costs awarded to someone because of an injury or damage to their property or belongings caused by you or your business. It also covers any related legal fees, costs and expenses as well as costs of hospital treatment (including ambulance costs) that the NHS may demand from you.

Policy costs depend on the type of business you run, your turnover and the number of employees you have.

Public liability insurance is a complicated product and likely clients must read carefully through all of the documentation to make sure that the insurance matches their needs.

Even if you work from home, and customers or members of the public meet you there, you may also want to consider purchasing public liability insurance.

Some professions, for example horse riding schools, are required to have public liability cover. You will also discover that many of your customers or potential customers need proof of adequate cover before they will allow you to work for them.

Many owners of small businesses or self employed tradesmen will find that there are a variety of products that are tailored to their particular trade. These policies are sold under a number of labels including business insurance, small business insurance or self employed liability insurance. These policies should include a variety of individual sections including employers and public liability, combined with a selection of professional indemnity, office insurance and legal expenses cover.

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