Liability Insurance is designed to cover you from third parties that include any member of the public, and your clients, who have suffered a loss as a result of your carelessness on your premises.

The legal costs, expenses incurred while defending the claims made by the third party, your liability insurance will pick up the legal costs for the compensation that has been awarded against you. Liability insurance is just a way to protect your business, though it cannot stop people from suing or winning their cases, but it can deal with the financial consequences.

Types of Liability Insurance
Employers Liability - If you run a business and employ any staff, you are required by law to take out Employer's Liability. Staff can be any person like part time, full time, delivery workers, trainees or sub contractors.

Product Liability - It's your legal liability to pay damages consequent to a defective product being used by the general public.

Public Liability - If you run a business involving contact with general people, public liability insurance policy will cover any injury to third party or any damage to their property caused by your inattention.

Professional Indemnity - If your business deals in services, professional indemnity provides protection against action by clients who receive bad or lax services and incur a loss as a result.

Public Liability Insurance - an insurance policy designed to cover your business in the event that you cause bodily injury or death to a member of the public or damage to a third party property.

If you are held legally liable for any kind of personal injury or for damage or your business is held against claim by third parties for negligent acts, if a member of public or customer suffers injury or damage to their property caused by you or you business, public liability insurance covers you against any claims made against your business and any legal fees, costs and expenses associated while defending claims.

Level of cover - A typical cover level under public liability insurance is £2 million. There is no fixed amount, as more and more business are taking out cover for £6 million and above. The level of cover can be expensive depending up your business activity, your turnover and number of employees you have.

Irrespective of what business you operate public liability insurance is an essential insurance policy which no business should ideally operate without. If you have a claim for compensation awarded against you your business will be liable to pay it if you do not have public liability insurance.

It's vital to keep your public liability insurance policy up to date to reflect any changing circumstances in your business. As you expand your business, you're likely to find your risks grow too.