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Frequently Asked Questions
What liability does a person have to consider when they are running a business?
You are only exempt if your company is a family business i.e. if all of your employees are closely related to you as husband, wife, civil partner, father, mother, grandfather, grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother or half-sister (however, this exemption does not apply to family businesses which are incorporated as limited companies) or companies employing only their owner where that employee also owns 50% or more of the issued share capital in the company. There are other exemptions under the Act, for details of these you should refer to JLT Business Insurance Services.
A valid Employers Liability (EL) Certificate must be made readily accessible to all employees and clearly displayed in each place of work. Recent changes to legislation (introduced 01 October 2008) now allow Employers to display their EL certificate electronically, provided it remains easily accessible by all employees.
In addition it is strongly recommended that a business has Public Liability to cover the Legal Liability for injury, loss or damage to members of the public or third parties. Cover is in respect of damages as well as costs and expenses incurred in the event of a claim for injury or for damage to property. Examples are customers tripping when visiting the business premises or damage to customers' premises on delivery of goods. (NB this insurance does not cover motor incidents – you must have an appropriate motor policy in force to cover your business vehicles).
You should also bear in mind that any business that provides goods could incur legal liability for injury or damage caused by those products. The Consumer Protection Act 1987 imposes a strict liability for injury or damage caused to consumers, examples could be a foreign object being found in food causing personal injury.
Disclaimer
Whilst all reasonable care has been taken in the preparation of this publication no liability is accepted under any circumstances by Jardine Lloyd Thompson for any loss or damage occurring as a result of reliance on any statement, opinion, or any error or omission contained herein. Any statement or opinion reflects our understanding of current or proposed legislation and regulation that may change without notice. The content of this document should not be regarded as specific advice in relation to the matters addressed.
JLT Business Insurance Services is a division of Jardine Lloyd Thompson UK Ltd who are authorised and regulated by the Financial Services Authority under No. 310419. The SFMTA are introducer appointed representatives of Jardine Lloyd Thompson (UK) Limited.