Are there different levels of liability coverage available?

Are there different levels of liability coverage available?

There are many different levels of liability insurance and many different types depending on the size of your business and the nature of your business, generally speaking the more you pay for your liability insurance the more cover you have for your business.

While you are researching and hearing about liability insurance and all the other types of insurances there are such as public liability insurance, employers insurance, products liability cover and so on, you may feel a little overwhelmed with it all. Many insurance companies offer policies that cover all the necessary insurances you will need depending on the type and size of your business.

For example you may have a shop selling childrens toys, you employ two staff members, and your turnover is £350,000 per annum on average. The insurance company will recommend a policy that includes liability insurance, public liability insurance, product liability insurance, which covers legal costs of £x amount and so on. It is still in your best interest to learn as much as you can to ensure your business is fully covered.

The different levels of liability insurance all go off your nature of business and the size of your organization. If you are a family business working from home your requirements will be different from a large blue chip international company.

Generally the aspects of how one liability insurance cover will differ to the next will include the level of cover, the excess, exclusions, and working abroad. The level of cover can vary from anything of £5million to £10million. The excess is the amount you have to pay in order to make a claim this can vary from insurer to insurer anything from £100 to £500. Exclusions involve activities that are not covered within your policy such as working abroad, your insurance is not active if you work outside the UK unless stated otherwise in your policy.