Why Do I Need Public Liability Insurance?

Whether you work from home as a sole trader, own a small business, or have a large company with many employees, you need to make sure that you are protected against claims brought against you by those who visit your premises.

That’s where public liability insurance comes in; this insurance is important to have for any business as it offers a level of protection against potential problems, such as trips and falls which could lead to injury or damage to equipment while on your premises.

What Is Public Liability Insurance?

Public liability insurance covers you against claims made by members of the public or clients who have suffered personal injury or property damage as a result of visiting your premises.

Public liability helps your business cover compensation costs brought against you by third parties and clients.

Example 1: Client

You have a potential client visiting your premises, and they have brought their own equipment with them. While at your office, they trip over a loose network cable and fell, and dropped their laptop in the process, the impact of which leaves the equipment broken and unusable.

If the client were then to put in a claim against you for the cost of repairing their equipment due to negligence on your part, public liability insurance would help to cover the cost of replacements or legal fees.

Example 2: Contractor

You have hired a plumber to carry out work at your premises, and because of negligence in their work – such as a loose valve – it led to your property sustaining water damage and loss of equipment. The contractor would have to have public liability insurance to cover them should you make a claim against them.

What Is Employer’s Liability Insurance?

Aside from public liability insurance, business owners are also advised to take out what is known as Employers’ Liability Insurance. While public liability insurance helps to cover customers and clients, employers’ liability helps protect you against claims made by your own employees in the event of injuries sustained while working for you.

Do I Need Public Liability Insurance By Law?

While public liability insurance is not a compulsory insurance for businesses to have, if you interact with members of the public or have clients visiting your premises daily, you will need to make sure they are covered against any unexpected circumstances.

Having public liability cover can help give your business peace of mind, for you will be covered in the event of a tragedy. Take a look at our in-depth guide on Who Needs A Public Liability Insurance for more information.

How Much Can I Cover For?

Public liability policies can range from around £1m up to £5m, and depending on the insurer you go with, you will usually have a choice as to how much cover you want to insure yourself – which will depend on your business area and the size of your company.

Can My Business Apply For PL Insurance?

Public liability insurance can be taken out by any business from a sole trader or independent, all the way up to a large corporation. PL insurance is essential for those businesses that are customer-facing or those who welcome clients into their premises to do business.

By making sure you are covered against any potential accidents or property damage sustained by your customers and visitors, you can save money and hassle in the event of a claim.

How Can I Arrange Cover?

Work out how much you can afford for some public liability insurance, then seek out and speak to a specialist broker who deals with public liability insurance. Depending on the size of your business, you can negotiate levels of excess and the level of cover you’ll need.

What Will This Cover?

Your PL insurance policy will cover aspects such as:

  • Personal injury sustained by customers and clients on your premises
  • Damage to property as a result of negligence on your premises
  • Hospital and medical bills incurred as a result of an injury or incident at your premises
  • Damage to property as a result of poor workmanship by your staff

While public liability insurance is not mandatory, it can be useful to have to cover your business against unfortunate incidents. It’s better to be safe than sorry in this case, so taking out some PL insurance can be a wise investment which can offer a level of protection for the future of your business.