On this page we answer the questions customers most frequently ask us about commercial insurance. Click on any of the questions to go straight to the relevant answer. If you don't find the answer to your question here please contact us, we'll be happy to answer it in person.

The rules governing the answers to the questions below vary from insurer to insurer but the answers have been compiled by reference to the general approach of most. The answers given are a general guide only. You should always read your policy and, if you have any doubt at all, check with us.

During the course of your business activities you may encounter many different hazards some of these may result in you causing damage or loss to a third party. Public liability insurance seeks to indemnify you against most of these occurrences and covers your legal liability in respect of bodily injury, death, disease to another person (not an employee) or for accidental damage to third party property. Some policies extend to give products liability which gives cover for legal liability for loss or damage caused by goods manufactured, sold, supplied, repaired, altered, installed, erected, processed, tested, cleaned or treated.

Firstly, you need to establish "who is an employee?"
 

• An employee is any person working with you in connection with your business who is a person:
• under a contract of service or apprenticeship with you.
• who is a labour master or labour only sub-contractor or any person supplied by them.
• who is another self employed person working for you.
• borrowed by or hired to you.
• participating in a work experience or similar scheme.

Employers liability insurance is compulsory under law in the UK and provides indemnity in respect of your legal liability as an employer for compensation for accidental injury arising in connection with your business to any employee caused during the course of their employment with you.

Probably not. Where a sole trader (not a limited company) employs members of the immediate family then employers liability cover is not normally required but is still desirable. Sometimes a sole trader will take on a work experience person for a couple of weeks - most insurers will extend cover for this. Even as a sole trader there is sometimes a mistaken belief that employers liability is not applicable in cases where it should be in place. The most common error is where sub contractors are involved. They will normally carry their own public liability insurance but if you have engaged them on site to be your sub contractors and they follow any instructions given by you then there is an employer/employee relationship and cover is required. Liability claims tend to be high and the subject quite complex so it is wise to check with us if you are at all unsure.