ÒõÌÒÓ°Ôº

The two most common types of claims made against a business are either from a member of the public (Public Liability) or an employee (Employers’ Liability).

What is Public Liability insurance?

Public Liability insurance provides protection to your business for claims made against you for personal injury or property damage by a member of the public e.g. a customer, visitor or service user. If a claim is made against you it will usually be via a third party solicitor.  

What is Employers’ Liability insurance?

Employers’ Liability insurance protects your business against the cost of claims to compensate employees for injuries and illnesses sustained due to their work. Employers are legally responsible for the health and safety of their employees at work. HSE (Health & Safety Executive) can fine you if you do not have appropriate insurance in place or do not have the certificate correctly displayed.  

There has been an incident at my business what do I do?

Full details should be taken of the incident. If it is a personal injury this should be recorded in your accident book and/or a RIDDOR report completed. Any other evidence related to the incident should be kept such as CCTV, visitor’s records, care plans, witness statements and relevant risk assessments. Excellent record keeping may later allow you to dispute or defend a claim made by a third party. Following an incident do not admit liability at any point as this could jeopardise your insurer’s position. Even if you do not think the incident will lead to a formal claim against the business, please do report this to us, your broker. We will help assess if insurers need to be notified of this as a potential future claim. Please check the policy wording for your insurer’s specific claims reporting conditions.  

I have received a third party solicitor’s letter, what should I do?

Don’t panic.

1. Contact us - forward us a copy of the letter as soon as possible.
2. Reply - do not comment on the incident or who is at fault. You can however acknowledge receipt of the letter, confirm your insurers details and disclose related records (if you are satisfied the third party have the appropriate authority).
3. Prepare- insurers will need to investigate the alleged incident- please begin to gather all supporting documentation.  

What will insurers do upon receipt of a third party solicitor’s letter?

Firstly they will confirm that cover is in place at the time of the alleged incident. They will also check there are no exclusions or excesses applicable. Insurers will then look to establish the exact circumstances of the incident. A liability adjuster will be appointed to investigate the incident fully, their job is to ascertain if the business is at fault. Can the business be seen to have caused (or not mitigated against the incident)? We would encourage your full and timely cooperation with this process.  If insurers find liability onus on the company then they will negotiate with the claimant solicitors and review the appropriate medical evidence. If an out of court settlement can’t be agreed then court proceedings may be issued. Insurers will avoid this where possible due to the high costs associated.

If you need any additional advice around this our anything else in connection with your business insurance, please do not hesitate to contact myself, or a member of my team on 01273 424904.