If you own a business, protection is paramount, and we’re not just talking about the locks on the doors or the security system you use for surveillance. People will need to be protected as well, both the staff you employ and the customers who come through the door and keep your business, in business.
What is Public Liability Insurance?
Public liability insurance helps protect your business against claims brought against it by third parties. This can involve those who have suffered personal injury or damage to their property due to your neglect or as a result of a mishap on your premises – usually a slip, trip or fall – which can be costly to your business if you’ve not taken precautions.
Who can bring a claim against me?
Customers who have suffered an injury while on your premises, either due to a mistake by one of your staff or as a result of a trip or fall caused by a wet or poorly maintained floor.
Another example could be if a visitor to your site; a salesperson or contractor we’ll say, suffers injury or damage to property due to a trip caused by loose wires or cracks on the floor, which then leads to damage to their person or to the equipment they might be carrying.
In these cases, public liability insurance can help protect your business against costly claims. Depending on the incident, you’re likely to be chased for compensation to cover medical costs or damage to equipment, so it’s worth making sure you are covered.
What protection does it offer?
Public liability insurance will provide cover for a range of different costs brought forward as a result of claims, these can include:
- Legal expenses
- Costs of repairs as a result of flood damage caused by your negligence – for example causing damage to a clients’ property or possessions as a result of a mistake during your duties, which may lead to water damage.
- Costs of compensation brought against you by a third-party for injuries sustained or for damage to property. This can cover your premises, a customer site, or many others.
- Hospital treatment costs brought against you by the NHS to provide treatment.
- Other expenses that are deemed reasonable to claim
Is there anything that’s not covered by the policy?
Public liability insurance does not offer the insurer any personal protection, against damage to their own property nor any claims brought against them by their staff members Such claims will be covered by employers liability insurance and general business insurance policies.
Does my business need it?
Public liability insurance is not a legal requirement for your business, unlike employers’ liability insurance, which offers protection against claims brought against you by staff members who may become ill or injure themselves while working for you.
No matter what your business, if your work involves members of the public – whether it’s providing a service or simply performing at an event – public liability insurance can be useful since it would protect you should anything happen during your period of business.
In some cases, it is better to over-insure your business to further protect yourself against future incidents than to leave yourself short in the event of multiple claims.
How much will it cost me to cover my business?
There is a wide network of brokers who offer public liability insurance policies of varying degrees of cover to suit your business. Talk to your insurer and discuss in detail what type of cover you want for your business.
All these insurances, which one does my business need?
It can be worth having all three of the insurances mentioned in this guide against your business to ensure all your bases are covered in the event of a claim. Be aware that, while your policy may come down depending on how high an excess you want to set, you must ensure you can cover the cost of the excess should you need to claim.
- Public liability insurance covers you against claims made by third- parties.
- Unlike employers’ liability insurance, public liability insurance is not a legal requirement.
- You decide how much excess to put against a policy, setting it higher could mean a cheaper premium.