About Personal Liability Insurance

Personal liability means that the party or parties involved are solely responsible for accidental injury to a third party and/or accidental damage to their property.

The intention of this part of the site is to explain what cover each type of liability insurance offers and how liability insurance is sold and priced.

In order to get a liability policy with an insurer, you will be required to pay a ‘premium’. The premium is effectively the price the insurer charges to accept your business. This price will have been carefully calculated to balance various risk factors and put a fiscal value on insuring against those risks. For most small risks there will be a standard premium rate charge based on the claims that they have paid in similar circumstances. As well as using risks to calculate the premium an insurer may also take into account positive features such as a good claims record or good risk management characteristics.

There are various types of personal liability insurance. The main categories are employers’ liability, public liability, product liability and property owner’s liability. Employers’ liability insurance gives employers personal protection from the legal fees of employees who are injured or made ill at work. Public liability insurance covers any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business. It also covers any related legal fees, costs and expenses. Product liability insurance covers you against damages awarded as a result of damage to property or personal injury caused by a product that you have sold or given away. Property owners' liability insurance enables you to meet any costs and damages awarded to a member of the public if they suffer an injury following an accident on, or linked to, your premises.