Employers’ liability insurance covers the cost of defending or settling a claim against you from an employee who has suffered injury or disease as a result of the work they do.
This could be an employee falling off a ladder who hasn’t received the correct training or an employee working on a production line for hours without a break who suffers repetitive strain injury as a result.
It is a legal requirement that this cover is purchased if you have any employees and whilst the legal limit is £5,000,000, insurers provide a £10,000,000 limit as standard.
Public liability insurance covers you for the cost of a claim from a third party (not employee) that has suffered injury or property damage caused by you or your employees in the course of business.
If you visit client premises in the course of your work and accidentally spill coffee on their computer, they could seek compensation for the cost of repairs. If a visitor to your premises trips on stairs due to a loose mat and suffers injury, public liability insurance protects you for the cost of damages claimed and the legal defence costs for such a claim.