In the current economy, personal liability insurance has never been more vital

As businesses battle on in the tough economic climate, the importance of public liability insurance is being emphasised. Insurance broker Endsleigh is stressing the necessity for insuring against claims such as personal injury and negligence as more people seek redress for accidents and perceptions of wrong doing.

The last ten years has seen the emergence of a ‘compensation culture’ and personal accident claims have continued to rise. A corresponding increase in the level of legal services to assist those seeking compensation has also occurred, usually working on a no success, no fee basis. For example, the Work and Pensions Compensation Department announced that injury claims after road accidents have increased by nearly 70 percent.

Prime Minister David Cameron moved to limit legal fees from injury claims in an attempt to curb the growth in legal services, claiming the upsurge was restricting business growth as companies took a more conservative approach to their activities and their attitude to risk.

The advice to businesses is to ensure sufficient liability insurance is in place to enable business continuance. Endsleigh stressed that a good insurance policy will cover the company against negligence as well as injury and the policy payments could be one their best investments as even dubious claims could be expensive to defend.

For home businesses where tools are in regular use, public liability insurance will include accidents that arise from their use and Endsleigh suggested regularly reviewing the amount of cover with an experienced and trusted adviser.

While it is a legal requirement to hold insurance in the event of accidents to employees, it is important to maintain insurance cover to protect the business as a whole. For example an employee could have an accident which either directly or indirectly could threaten the viability of the whole organisation.