What Is General Liability Insurance?

General Liability Insurance is a broad term often used to describe insurance protecting businesses against certain legal liability claims.

In the UK, businesses typically arrange specific types of liability cover, including Public Liability, Employers’ Liability and Products Liability Insurance.

These policies protect against different exposures and may be arranged individually or as part of a wider commercial insurance package.

The right combination depends on what your business does, whether you employ people, the products you supply and the risks associated with your activities.

Types of Business Liability Insurance

We can help you explore the different forms of liability insurance relevant to your business.

Not all these covers are automatically included in a single policy. The precise protection depends on the insurer, policy wording, limits, exclusions and conditions.

Public Liability Insurance Quotes

Public Liability Insurance is relevant to businesses that interact with customers, visitors, suppliers or other third parties.

It may protect your business against certain legal liabilities if someone is injured or their property is damaged because of your business activities.

Examples of Public Liability Claims

• A customer slips on a wet floor at your premises.
• A contractor accidentally damages a client’s property.
• A visitor is injured by equipment at a business location.
• A business activity causes accidental damage to third-party property.

Public Liability Insurance may cover qualifying compensation and legal defence costs, subject to policy terms.

It does not automatically cover employee injuries, professional advice errors or every type of property damage.

For more information, visit our Public Liability Insurance page.

Employers’ Liability Insurance Quotes

Employers’ Liability Insurance is designed to protect businesses against certain compensation claims arising from employees suffering injury or illness connected with their work.

Most UK employers are legally required to arrange Employers’ Liability Insurance with a minimum cover of £5 million, although exemptions apply.

Many commercial policies provide a £10 million limit as standard.

Examples of Employers’ Liability Claims

• An employee is injured while using workplace machinery.
• A member of staff suffers an injury following a workplace fall.
• An employee develops a qualifying work-related illness.
• A worker alleges that inadequate safety procedures contributed to an injury.

Employment arrangements involving temporary staff, labour-only subcontractors, apprentices or other workers should be disclosed so that the insurer can assess the exposure correctly.

For more information, visit our Employers’ Liability Insurance page.

Products Liability Insurance Quotes

Businesses involved in manufacturing, importing, distributing or selling products may face claims if a product allegedly causes injury or property damage.

Products Liability Insurance is an important consideration for businesses throughout the supply chain.

Businesses That May Need Products Liability Insurance

• Manufacturers and engineering businesses.
• Wholesalers and distributors.
• Retailers and online sellers.
• Importers and exporters.
• Businesses selling products under their own brand.
• Companies supplying specialist or safety-critical products.

Products Liability Insurance is not a universal legal requirement for every UK business, but it may be required contractually and can provide important financial protection.

Insurers may apply specific restrictions relating to product types, trading territories, safety-critical applications and product recall costs.

For more information, visit our Products Liability Insurance page.

Professional Indemnity Insurance

Businesses providing professional advice, consultancy, design or specialist services may face claims arising from alleged mistakes, negligence or omissions.

Public Liability Insurance does not normally replace Professional Indemnity Insurance.

Professional Indemnity cover may be relevant to consultants, designers, engineers, professional service providers and other businesses providing advice or technical services.

For more information, visit our Professional Indemnity Insurance page.

Who Needs Business Liability Insurance?

Liability insurance can be relevant to businesses across a wide range of industries.

Liability Insurance for Difficult-to-Place Businesses

Some businesses find it difficult to obtain suitable liability insurance through standard providers.

This may be due to the nature of their activities, previous claims, contractual requirements or the products they supply.

At Edison Ives, we can explore insurance options for businesses with more complex requirements, including:

• Specialist and unusual occupations.
• New ventures and start-up businesses.
• Businesses with previous insurance claims.
• Companies undertaking higher-risk activities.
• Manufacturers of specialist products.
• Importers and exporters.
• Businesses with complex contractual insurance requirements.
• Companies previously declined insurance or subject to cancellation.

Insurance availability depends on the circumstances, and not every risk will be acceptable to insurers.

Accurate disclosure of previous claims, cancellations and business activities is essential.

How Much Liability Insurance Does My Business Need?

The appropriate liability limit depends on the nature of your business, the potential consequences of a claim and any contractual requirements.

Public Liability Limits

Common Public Liability limits include £1 million, £2 million, £5 million and £10 million, subject to insurer availability.

Employers’ Liability Limits

Most UK employers required to hold Employers’ Liability Insurance must have at least £5 million of cover, although many policies provide £10 million.

Products Liability Limits

The appropriate limit depends on the products supplied, their intended use, sales volumes, territories and potential consequences of product failure.

It is important to understand whether limits apply to each claim or in the aggregate, particularly for Products Liability and other specialist policies.

How Much Does General Liability Insurance Cost?

The cost of business liability insurance depends on the activities and exposures involved.

A tailored quotation allows the insurer to assess the particular risks and cover requirements of your business.

What Does General Liability Insurance Not Cover?

Liability insurance policies contain exclusions and conditions that determine when protection applies.

Depending on the policy, common exclusions or restrictions may relate to:

• Professional advice or services without appropriate cover.
• Injury to employees under a Public Liability policy.
• Damage to property being worked upon.
• Faulty workmanship or the cost of correcting defective work.
• Product recall expenses.
• Pollution and contamination.
• Deliberate or unlawful acts.
• Undisclosed activities or products.
• Claims arising in excluded territories.
• Cyber incidents without appropriate insurance.
• Liabilities assumed solely under certain contractual agreements.
• Claims exceeding policy limits or falling within excesses.

Some of these risks may be insurable through specialist extensions or separate policies.

The policy wording, schedule and endorsements should always be reviewed carefully.

What Information Is Needed for a Liability Insurance Quote?

To help us explore suitable insurance options, we may ask for:

• Your business name and trading history.
• A detailed description of your activities.
• Annual turnover and any relevant breakdown.
• Number of employees and payroll information.
• Products manufactured, imported or supplied.
• Countries in which you trade or undertake work.
• Subcontractor arrangements.
• Previous claims and insurance history.
• Required liability limits.
• Relevant contractual insurance requirements.
• Any specialist or higher-risk activities.

Some businesses may need to provide additional underwriting information depending on the nature of their operations.

Frequently Asked Questions About General Liability Insurance

What is General Liability Insurance called in the UK?

In the UK, businesses commonly arrange Public Liability, Employers’ Liability and Products Liability Insurance rather than a single policy universally described as General Liability Insurance.

Is General Liability Insurance compulsory in the UK?

There is no universal requirement for all UK businesses to purchase a policy called General Liability Insurance. However, Employers’ Liability Insurance is compulsory for many employers, subject to exemptions. Other cover may be required by contracts or industry-specific rules.

What is the difference between Public Liability and Employers’ Liability?

Public Liability Insurance generally concerns certain claims involving third parties, while Employers’ Liability Insurance protects against qualifying employee injury and illness claims.

Does Public Liability Insurance cover products?

Products Liability cover is often arranged alongside Public Liability, but it should not be assumed to be automatically included. The policy must reflect the products your business supplies.

Do sole traders need liability insurance?

Liability insurance can be important for sole traders, particularly those working at customer premises or supplying products. Whether it is legally or contractually required depends on the circumstances.

Can I get liability insurance for a new business?

Insurance options may be available for start-ups. Insurers may consider the business activities, relevant experience, projected turnover and other underwriting information.

Can I obtain insurance if I have previous claims?

Some insurers may consider businesses with previous claims, subject to the nature, frequency and circumstances of those claims.

Does liability insurance cover legal defence costs?

Many liability policies provide cover for specified legal defence costs associated with insured claims, subject to the policy terms, limits and insurer requirements.

Why Choose Edison Ives for Liability Insurance?

Every business is different, and the right liability insurance depends on understanding the activities and exposures involved.

At Edison Ives, we take time to understand your business and explore suitable insurance options.

Our approach includes:

• Understanding your activities and commercial risks.
• Identifying relevant liability insurance requirements.
• Exploring appropriate insurance markets.
• Considering specialist or difficult-to-place exposures.
• Helping you understand policy limits, exclusions and conditions.
• Providing personal broker support throughout the insurance process.

Part of David Roberts & Partners

Edison Ives is proud to be part of David Roberts & Partners Ltd, an independent insurance broker group.

Our group relationship supports access to wider insurance expertise and markets while allowing us to maintain a personal approach to our clients.

Contact Edison Ives

Call 0113 390 4646

Email info@edinsure.co.uk