What Is Occupiers’ Liability Insurance?
Occupiers’ liability insurance is a type of public liability insurance that covers the occupier of business premises for injury or damage claims made against them. This insurance product is usually called public liability insurance.
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What Is Occupiers’ Liability Insurance?
This cover protects from lawsuits related to injuries on-site, and in some cases, it can also protect from criminal acts like vandalism. The most common coverage for businesses is only premises accidents, but some policy forms include vehicle use such as vans or trucks.
What Type Of Insurance Do I Need?
There are two different types of occupiers’ liability policies: indemnity and those with a higher limit (usually up to £5 million). Higher limits are often used in properties such as hotels or sports grounds. Occupiers’ liability insurance is often used as a stand-alone cover instead of another form of commercial insurance.
Employers also used it as a form of an employee benefits scheme. However, this has now been superseded by other ways of providing employees with life cover. Indemnity coverage will generally provide higher limits than the statutory public liability limit – whichever is greater. In addition, some policies may have a public liability cap or ‘minimum guarantee’, which reduces the amount the policy covers if it is below the minimum level required by law (currently £500,000).
Occupiers liability insurance can also include the following:
Loss of income and business interruption cover
Employer’s liability or ’employers’ liability (income protection) – this is an indemnity policy, which pays an income to the insured if they are unable to work due to sustaining an injury at work. In addition, it may provide for regular payments for rehabilitation should the injured person return to work.
Employment Injury Payment – this protects the injured worker from losing their employment insurance benefits and any other benefits paid to employees in the event of being injured at work. The policy may also provide for the provision of medical reports and treatment if necessary. In addition, the employee may have to provide proof of attendance at work, and the insurer will follow up on personal injury claims.
Personal Injury covers injuries caused by motor accidents, bicycle injuries, and other workplace accidents that might not be insured under other cover types. These cover types are not explicitly known as occupiers’ insurance but are often bought as part of a general business insurance policy.
Occupiers’ liability insurance provides protection where an employer or owner of a business is issued in the contract because of an incident on the premises. The law usually requires that any person who owns or operates a business be insured for such incidents.
Depending on the nature of the business, this policy may also cover criminal acts such as vandalism or theft. Generally , businesses with significant cash and merchandise on-site will purchase a higher liability limit than the standard £5 million limits. In some cases, schools or sports facilities require higher limits to the owners to avoid future lawsuits.
How Does Occupiers Liability Insurance Work?
In the case of a claim, the policy will pay either the amount of the claimed loss; or, in some cases, a substantial additional sum to cover any losses above the minimum liability limit if further losses were resulting from criminal damage. The policy may also pay legal fees should the claim be contested.
The indemnity portion will generally provide the insured with up to a liability limit of £5 million, depending on the type of policy purchased. This covers a wide range of events; for example if someone is badly injured on a construction site owned by somebody else. This can include buildings that have been rented to customers or employees, such as shops or factories.
It will also cover incidents that happened off-site, such as a building fire caused by faulty wiring or an accident involving an uninsured person in a car driven by an employee.
What Is Occupiers’ Liability Insurance? To Conclude
If you are found by a court to be legally liable for an injury that happened on your property, you must ensure you have appropriate insurance cover. The rules around occupiers’ liability and other forms of security are subject to change, so it is best to check current laws with an adviser or insurer.
Find out more about the importance of insurance here .
Other useful links about Business Insurance:
Is Professional Indemnity Insurance a Legal Requirement?
How Much Product Liability Insurance Do I Need?
Is Employers’ Liability Insurance a Legal Requirement?
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