A lot of people confuse public liability and employers’ liability insurance, as they both seem to offer broadly the same sort of cover.
In this post we’ll explain the key differences between public liability and employers’ liability insurance, to help you understand what sort of cover you need for your business.
Long story short: It’s very likely that your business will need both public liability and employers’ liability insurance. At Anthony Jones, we can advise you on your business insurance requirements, and we can also help you get the cover you need at a price you can afford. Learn more about our expert business insurance services.
Public Liability vs. Employers’ Liability Insurance – The Key Differences
- Employers’ liability insurance is required by law, and businesses must display their insurance certificate.
- You have no legal duty to get public liability insurance.
- Public liability insurance covers damage to public or private property, injury to members of the public, and injury to clients or other business representatives.
- Employers’ liability covers injury to your employees, as well as any illnesses your employees might contract on the job.
What is Public Liability Insurance?
Public liability insurance covers your business for claims made by clients, customers, contractors, and other members of the public.
A public liability insurance policy can cover you for incidents that take place on your premises. For example, if a customer injures themselves after tripping on a loose wire or slipping on a wet floor, your public liability insurance can cover all legal fees along with any compensation that might be due.
Public liability insurance can also cover your business for incidents that take place on a client’s premises. For example, you might pay a site visit to a client for a meeting, and accidentally spill coffee on an expensive bit of equipment. In this case, your business’s public liability insurance policy could cover any damages, including repair and replacement costs.
What is Employers’ Liability Insurance?
Employers’ liability insurance covers your business for claims made by your employees for injuries and illnesses they sustain as a result of their work.
Most businesses have a legal obligation to get employers’ liability insurance, as well as a legal requirement to prominently display your insurance certificate. It’s designed to ensure that all UK employees can claim compensation should their work ever have a negative and lasting impact on their lives.
Businesses Exempt From Employer’s Liability Insurance
Not all companies are required to have employer’s liability insurance. For example, companies with no employees or a family business that only employs family members are listed as businesses exempt from employer’s liability insurance by the ABI.
In Summary – The Difference Between Public Liability and Employers’ Liability Insurance
Though they might cover similar claims, the key difference between these two policies concerns who’s making the claims:
- Public liability insurance covers you for claims made by members of the public, whether that’s clients, customers, contractors, or others.
- Employers’ liability insurance covers you for claims made by your employees.
Public Liability Insurance vs. Employers’ Liability Insurance – Which Do I Need For My Business?
Most likely, you’ll need both employers’ liability and public liability insurance.
If you employ any members of staff, then no question about it: You have a legal duty to get employers’ liability cover.
Though you don’t have any legal duties when it comes to public liability insurance, all businesses should consider getting this sort of cover regardless.
No matter what sort of business you’re running, you will very likely welcome members of the public to your business premises from time to time. Or you’ll spend some time on other peoples’ premises in a business capacity. Even a small accident could end up costing your business dearly, but a public liability insurance policy should cover you for most claims that members of the public might make against you.
At Anthony Jones, we can advise you on the risks you might face in your sector, and the sort of business insurance you’ll need to meet these risks. We can then help you get the cover you need at a price you can afford. Learn more about our expert business insurance services.