Why Your Business Needs Public Liability Insurance
Nobody wants to have to think about worst-case scenarios, but as a business owner, it’s something you can’t afford to ignore.
Your business is your livelihood, so it’s vital to make sure you’re prepared for the unexpected – especially when the consequences of not doing so could push your company into the red, or even out of business entirely.
If your business involves any kind of contact with members of the public, then you’l need to get public liability insurance.
What is Public Liability insurance?
Public liability is a form of business insurance, to cover you, should a member of the public suffer an injury or their property is damaged, due to your business.
Should an incident occur on your business premises, or at an event organised by your company (such as a customer slipping or tripping over), it’s there to cover you should there be any claims made against you.
It can help with the legal claims, or compensation, should your business be found at fault.
The question is, do you need public liability cover?
So who needs public liability cover?
Unlike employers liability insurance, it is not a legal requirement to have public liability insurance, however, if you regularly interact or deal with members of the public, this type of insurance is integral to your business and can help save you if a situation occurred.
For example, if you own a restaurant, and a member of the public is injured by slipping on a wet floor, this could make you liable and they might decide to sue you, this is where your liability cover would come into play.
You may also find there are cases where you have clients that will not work with you, without a particular level of public liability cover, specifically when you performing work for government or local authorities.
How much does public liability insurance cost?
The costs for cover will vary from company to company, and also depend on a number of factors including:
- The nature of our business and what you do.
- The number of people you employ.
- If you’ve had any previous claims against you.
- Your health and safety record.
- How much you come into contact with customers.
- The amount of cover you need.
Your insurer will ask you these questions to determine the cost and cover needed for your particular circumstances.
What does public liability insurance cover?
If someone is injured on your premises, or their property is damaged, you could find yourself the subject of legal action to reclaim costs and compensation.
If you’re ordered to pay damages, you may find that the sums involved are enough to cripple your business – particularly if you’re only a small company.
Public liability insurance would pay these costs, along with any other expenses arising from the court case, such as legal fees, cost for repairs and damages.
If someone is injured, there may also be hospital costs, should the NHS decide to claim against you (such as ambulance call out costs, medical fees etc.) that your public liability would cover.
It’s not only your own premises public liability can cover, if you’re a mobile business, you could still find yourself liable for damages if anyone is injured or any property damaged under your watch.
For example, as a builder, you might inadvertently damage a load-bearing wall, or leave tools out that the homeowner trips over. A plumber might fail to fix a radiator correctly, resulting in a room being flooded and carpets needing to be replaced.
Having public liability could help cover damages in these situations.
How much public liability insurance do I need?
The cost of your public liability insurance policy depends on the level of risk your business is deemed to entail. Most insurers will normally start out at £1 million worth of cover as standard and then adjust the level depending on your circumstances.
There will be factors such as how dangerous the work you do is, how many people you employ, how much your turnover is, and the number of locations you work from that will need to be taken into account that may have an effect on the amount of cover needed.
Certain working conditions – such as working at height – will also affect the amount of cover your business needs
If your work takes you to other people’s premises, you’ll need to ensure your public liability insurance includes third party cover.
Take out public liability insurance today
Arranging public liability insurance doesn’t take long, but it will give you peace of mind that you’ll be able to keep your business going in the unfortunate event that you’re taken to court as a result of an accident.
So don’t delay – get your business covered with public liability insurance today!
Call our business insurance experts on 0800 078 7003 (or 0300 600 0603) to discuss what level of cover you need for your business
Or complete our Get a Quote Form and we’ll get back to you with a no-obligation quote.