Public liability insurance – or, business liability insurance. Simply put, it’s designed to protect you from having to pay high legal costs. As a business owner, it should be high on your priorities list. Accidents can and do happen. Having the right cover can prevent you from going bankrupt.
Accidents can happen any time. Your own clients/customers could suffer from a personal injury on your premises. Public liability insurance can cover the legal costs, compensation and anything else. So…
…public liability cover is essential for any business that regularly interacts with customers.
All sorts of things could happen when a client is on your property. One of the most common accidents to happen in any workplace is a person slipping and injuring themselves.
Get Down to It: What public liability insurance covers
We’ve given you a broad definition. However public liability insurance definitely needs further explanation. People file compensation claims against companies every single day. Some of them are unfounded. Courts often throw a lot of them out; but a good few have legal standing. In these cases, business owners won’t have to just pay the fees. They also have to pay the compensation.
Consider the following example:
“Someone hired a roofing company to re-tile their roof. The weather protection implemented by the company didn’t hold up. Unfortunately, the property suffered from water damage. The client sued for compensation, which would go to pay for the repairs. Because the company took out public liability insurance, both the legal expenses and the compensation was paid back.”
Broken down, the following are covered:
- Compensation payments for the injury of a third party (or even death).
- Replacement/repair costs, should a property or possessions be damaged.
- Any medical fees that have to be paid as a result.
- Further legal expenses.
If your business comes into contact with any members of the public, insurance is necessary. The law doesn’t require it. However, as a business owner you run a huge risk if you don’t take it out. Examples of being in contact with the public can include:
- Customers who physically visit your premises (a shop, restaurant, pub etc.)
- If you work on client sites. One of the best examples is a tradesman, such as a builder.
- You work in public and the work you do could potentially harm/injure/kill someone.
Let’s talk numbers
As a business person, you may wonder just how much public liability insurance you need. Many policies offer a minimum of £1 million. Businesses can however choose from a number of different levels.
Of course, the level of cover you need could depend on the nature of your business. Those who work on government contracts often need a minimum of £5 million. Some may even need £10 million.
Things to consider with public liability insurance
You could say that cover is essential for businesses. A company could do everything right – but accidents can always happen. It’s the whole point of insurance, really. In certain cases, some clients may even refuse to work with you if you do not have liability cover. By taking out insurance and keeping it up to date, you’ll be safe regardless of what happens.