Virtually every organisation has business liability exposures. Such an exposure is a condition or situation Presenting the possibility that an organisation will be held legally or financially responsible for injury, harm or damage to another party. Here are five of the most common types of business liability exposures:

Occupiers’ liability—This exposure refers to the possibility that an organisation will be held liable if a customer or client is inured on its premises.

Employers’ liability—Such an exposure describes the risk an organisation faces if an employee injures
themselves or becomes ill in the course of their work.

Products liability—This exposure refers to the risk an organisation encounters as a result of manufacturing, distributing or selling an unsafe or defective product. Any organisation that makes or sells products faces this exposure.

Professional indemnity liability—Such an exposure describes the risk an organisation or individual faces should certain errors be made during the course of their business operations (eg a customer suffers financial loss due to poor professional advice).

Directors’ and officers’ liability—This exposure describes the risk an organisation encounters when a director or officer is found to have acted outside their terms of reference. For example, shareholders may
blame directors personally for financial losses In the event of a business liability loss, an organisation
may face a variety of consequences, such as:

Damages—If a court deems an organisation is responsible for third-party damages, it may be required
to pay those damages to the harmed or injured party.

Defence costs—Whether or not an organisation is deemed liable for a loss, it may need to pay legal
defence costs and other expenses associated with the claim.

Reputational harm—As a result of losses, an organisation may experience reputational harm,
including (but not limited to) lost business, decreased employee retention, and diminished consumer loyalty and investor trust.
For further guidance on reducing business liability exposures, contact us today.

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