Public Liability Insurance

Public liability insurance is a form of business insurance that can be vital to many companies. It covers any costs to your business that could come about if an accident in the workplace injures a third party or damages their property. It can cover any compensation claims made against you by a client or other member of the public. This could be for an injury or even death. It can also cover the cost of any legal fees involved when someone makes a claim against your business.

Public liability insurance isn’t required by law in the UK, but you may be obliged to get it depending on your industry or your clients. It can also be a requirement needed when bidding for certain contracts. It is available for all types of business, big or small, as well as freelancers and self-employed workers.

Public liability insurance covers your business against any claims made against you by a customer or member of the public. This could be due to an accident in your own workplace, or something could happen while you or one of your employees is working off-site. Public liability insurance typically covers the following:

Compensation

If a customer, client or other member of the public injures themselves or damages their property while in your workplace, they could make a public liability claim against you. These could run into the thousands of pounds, but public liability insurance can cover the costs of the claim up to the limit you have selected.. It can also cover any damage caused while working off-site, for example if you’re renovating a home but accidentally damage a valuable painting.

Legal costs

Sometimes, when a compensation claim is made against you or your business, the case may be taken to court. Legal fees are typically not cheap, but public liability insurance can cover your business for the costs of any legal proceedings.

Repair costs

If you or one of your employees damages any property belonging to a third party, for example if you’re doing some building work on a home and you break a window or damage a carpet that is not connected to, or a part of, the work you are undertaking,, then you will be expected to cover the costs of any repairs or replacements. Public liability insurance can have you covered for this too.

Medical costs

If a client or member of the public is injured in an accident or is taken ill in your workplace as a direct result of your business activities,, for example in a restaurant or bar, the NHS could make a claim against your business to cover the costs of any treatment or ambulance call out. Public liability insurance can cover the cost of any claims made against you by the NHS.

Public liability insurance can cover the costs of any compensation claims made against you if a third party is injured, taken ill or has their property damaged. However, it doesn’t cover the costs of any accidents that injure yourself or any of your employees. Any damage caused to your own business’s property should be covered in your standard business insurance policy. To cover any claims made against you by a member of staff, however, you will need to take out an employers’ liability insurance policy.

Public liability insurance is not required by law, but failure to be covered could lead your business into serious financial trouble if someone was to make a claim against you. Depending on your line of work, some industry bodies may even require you to have a minimum level of cover. If you work directly with customers or other members of the public, then a public liability insurance policy could be vital. Examples of professions that would probably need public liability insurance include builders, plumbers, electricians, carpenters, cleaners, gardeners, hairdressers and many more.

Even if you’re self-employed, public liability insurance could be essential. If somebody was to make a claim against you, you will have to pay for this yourself if you’re not covered, and this could leave your business struggling financially.

There are several factors that will affect how much you pay for your public liability insurance. The size of your premiums will depend on the size and nature of your business, where your workplace is located or where your staff work, and your claims history. The level of cover you need will also affect how much you pay for your insurance.

Businesses that are labour intensive and involve a lot of off-site work with heavy equipment and tools are generally seen as higher risk businesses by insurance providers. If your business is a tech company with a small office, you will likely pay less for your public liability insurance than a home renovation company would.

If your business has made previous claims on their public liability insurance, then you may also be deemed higher risk and may therefore be offered more expensive premiums.