UK businesses are becoming increasingly concerned about the rising cost of liability insurance, with premiums reportedly rising substantially year on year. Both the volatility of stock markets and the increasing willingness of employees to take their employers to court are said to be contributing to the rise.
But as Britain becomes a more litigious society the threat of litigation extends far beyond employees, and businesses now have to consider a wide range of protection including:
- Employers’ liability insurance
- Public liability insurance
- Product liability insurance
- Professional indemnity insurance
- Directors’ liability insurance
- Property owners’ liability insurance
Though the first of these, employers’ liability insurance, is compulsory, the others are largely discretionary, which leaves businesses with hard decisions to make about what cover they might need.
While they do not want to be under-insured if there is a real risk of possible litigation, they also do not want the costs of liability insurance to start running away and cutting into their profitability.
One of the main considerations for insurers when assessing premiums is the extent to which a business has an effective risk management policy in place, and being able to demonstrate that you have might enable you to reduce some premiums – especially if you shop around.
If you would like us to help we would be happy to conduct a review and advise on appropriate risk management procedures. Contact us for further information or see our Human Resources page.
Tags: Regulations, SME, sole trader, UK Insurance
