A liability insurance policy protects individuals or businesses from financial loss due to claims of injury or damage to others, covering legal fees, settlements, and compensation for things like bodily injury, property damage, or professional negligence, with common types including Public Liability (for general public claims), Employer's Liability (for employee injuries, often legally required), Professional Indemnity (for advice/service errors), and Product Liability (for faulty products).

 Key Types of Liability Insurance

• Public Liability (PL):

Covers claims from the general public or customers for accidents, like a slip and fall on your premises or damage caused by your business activities.

• Employer's Liability (EL):

Mandated by law in many places if you have employees, it covers compensation for employees injured or made ill by their work.

• Professional Indemnity (PI):

Protects professionals (like consultants, accountants) against claims of financial loss or damage from the services or advice they provided.

• Product Liability:

Covers injuries or damages caused by a faulty product your business designs, manufactures, or sells.

• Directors' & Officers' (D&O):

Protects company directors and officers from personal liability for wrongful acts in managing the company.

What It Covers

• Compensation to a third party for injury or property damage.
• Legal defense costs.
• Costs to repair or replace damaged property.

Why It's Important

• Legal Requirement: 

Employer's liability is often a legal necessity.

• Client Requirement: 

Many clients and local authorities require proof of PL or PI before hiring.

• Financial Protection: 

Shields your business or personal assets from potentially huge claim costs.

• Risk Management: 

Covers unforeseen incidents, like a client's laptop being damaged at your meeting.