Why it is important to review your liability Indemnity Limits

We live in an age where levels of litigation have never been higher. Businesses and individuals have an increased awareness of their legal rights, coupled with the relative ease of accessing the UK legal system to pursue a compensatory award where negligence is alleged.

The costs attached to the claims themselves are being driven ever higher, with previous awards used as a basis for future settlements. Changes to the Ogden Discount Rate in 2017 (the tool designed to ensure claimants are not under or over-compensated and used to calculate lump sum damages for future losses in personal injury and fatal accident cases), means the potential for even higher personal injury settlements is further exacerbated.

The following are examples of real claims dealt with by insurers that we work with and highlight the levels that can easily be reached:

l Public Liability - A painting contractor working on a National Trust property using a blow torch caused significant fire damage amounting to £23.5 million.

l Employers Liability – A claimant was aged 19 years at the time of an accident at work, which caused tetraplegia. The claim is currently reserved at £20.1million. The policy holder’s limit of indemnity was £10 million.

l We strongly recommend that you take some time to review your current liability indemnity limits in conjunction with reviewing any customer contracts you have in place, as these may require you

to carry a minimum level of liability cover. For further assistance speak with your existing broker who will be able to assist you.

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