Insurance public liability

As a result of an EEC Directive in 1985 relating to legal liability for defective products within Member States, the UK introduced the Consumer 

Protection Act 1987. This created a new civil liability for injury or damage caused wholly or partially by a defect in a product. However, the existing legal framework, under which a person could bring a claim for damages resulting from defective goods either by means of an action in contract or tort was retained. 

Prior to the Consumer Protection Act a very limited form of strict liability existed in the form of statutory liability in contract arising from the direct supply of defective products. This is defined by the Sale of Goods Act 1893 as amended by the Supply of Goods (Implied Terms) Act 1973 (now consolidated into the Sale of Goods Act 1979) and the Unfair Contract Terms Act 1977. 

The Products Liability Insurance policy is designed to cover this t)y)e of risk, indemnifying the insured against his liability for bodily injury or illness to persons or loss of or damage to property caused by products sold, supplied or repaired by the insured although damage to the defective product itself is excluded. 

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There is a legal requirement upon most employers to have in force employer s liability insurance covering injury to their employees. Public liability insurance, while not compulsory, is strongly recommended, both in terms of third-party liability (arising from the effects of corporate activities) and product liability (arising from the effects of corporate products. 

Public-liability insurance, including bodily injury and property loss or damage, on all operations such as those involving automobiles, elevators, attractive nuisances, bailee s charges, aviation products, or any company function carried on at a location away from the plant premises. 

Public liability insurance provides indemnity to the insured against their legal liability incurred for property damage and bodily injury to third parties. It normally provides indemnity to the insured for the financial consequences of damage to third parties caused by any activities of the insured giving rise to such... 

Although a few years ago there were indications that the UK insurance market was going to impose a total pollution exclusion on public liability insurance policies, no concrete signs have developed over recent times. Some general... 

In contrast to the Public Liability Insurance policy it is not usual to impose a Limit of Indemnity to the Employer s Liability policy. It also usually includes cover for all costs and expenses incurred with the insurance companies consent and extends to include the cost of representation of the Insured at proceedings in a Court of Summary Jurisdiction arising out of an alleged breach of statutory duty resulting in bodily injury or disease which may be the subject of indemnity under the policy. 

Insurance companies play an important role in the improvement of health and safety standards. Since 1969, it has been a legal requirement for employers to insure against liability for injury or disease to their employees arising out of their employment. This is called employers liability insurance. Certain public sector organizations are exempted from this requirement because any compensation is paid from public funds, ether forms of insurance include fire insurance and public liability insurance (to protect members of the public). 

These are costs that are directly related to the accident. They may be insured (claims on employers and public liability insurance, damage to buildings, equipment or vehicles) or uninsured (fines, sick pay, damage to product, equipment or process). 

Public liability insurance is different. It covers for claims made against a person/company by members of the public or other businesses, but not for claims made by employees. While public liability insurance is generally voluntary, employers liability insurance is compulsory. Employers can be fined if they do not hold a current employers liability insurance policy which complies with the law. 

Due to the nature of the common law relating to negligence in the UK it is obvious that an employer is liable to be sued for compensation for any loss or damages suffered by his employees. It is for this reason that employers in the UK are obliged by law to hold compulsory employers liability insurance . This insurance covers the employers for claims from their employees for up to 5 million. Employers will also take out public liability insurance to cover themselves from claims made by third parties who are seeking compensation for a loss, although this is not compulsory. 

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