Blog post to help you understand what public liability insurance is and what the minimum public liability insurance required for your business is. No matter the size of your business, once you know how public liability insurance works and the different levels of cover available, you can make sure that you have the appropriate protection in place should you need it.
What is a public liability insurance policy?
Liability insurance provides protection from claims made against you or your company; due to things like loss of business, personal injuries and/or accidental damage to property, that could’ve perhaps been caused by a member of your staff, a faulty piece of equipment or even a product you manufacture. A liability insurance policy covers the legal costs and any pay-outs where the insured party (you) would be found liable.
Public Liability is specific type of liability coverage to protect a business against liability for any events of injury to a member of public, or accidental damage to their property that might occur outside of the insured parties’ usual premises. This type of policy is vital for those companies that operate out and about, like couriers, painters, window cleaners, building contractors and outdoor traders for example, but also for those that allow the public through their doors like shops, beauty salons, restaurants and pubs.
So, what is the minimum public liability insurance required?
Well to be honest, the question you should really be asking is how much cover do I need? The cover level you require will ultimately depend on your type of business, but most public liability policies provide a minimum cover level of £1 million up to £5m. The ‘cover level’ is the maximum amount that your insurer will pay out in the event of an insurable claim. These cover levels are in the millions because compensation figures can be very high and can take into account things such as the third party’s loss of income, medical costs, and even ongoing care costs. You may also need cover for legal fees.
Am I legally obliged to have the minimum public liability insurance required?
Currently there’s no specific legal requirement for you to have public liability insurance in place at all, minimum or otherwise. Although, having this insurance cover shows that you’re aware of your responsibilities as a business owner, which can be particularly valuable when building a professional reputation and even when pitching for new business. You may also find some clients insist that you have public liability before they engage with you and when attending events like trade exhibitions, proof of PL cover is often required before you can make a booking.
Where to get a public liability insurance quote
Lots of business owners know that they need public liability insurance, however the process of finding the best cover from the best provider can be a headache. It’s easier than ever to find insurance policies online, but it’s also easy to be given too many options, often people can find themselves overwhelmed with choices and offers. Eventually, they give up and unfortunately the longer they wait, the greater the risk that an accident could occur.
The best method to compare your public liability policy is to use a broker, why not get unbiased advice from an insurance professional who knows exactly what they’re searching for? An Insurance Broker can save you time, hassle and money, whilst making sure that they have arranged the minimum public liability insurance required for your business.
1st Choice Insurance are an award-winning independent brokerage, and our team of friendly and knowledgeable advisors can offer you free advice on your business insurance and a no obligation quote. Give us a call on 01743 770 500.