What does Public Liability insurance cover?
Public Liability insurance covers your business if someone has an accident and gets hurt while they are on your premises. Equally if you accidentally damage someone else’s property, your Public Liability insurance will protect you.
If a member of the public sues your business for damage you are held responsible for, your Public Liability insurance will cover the cost of your legal defence and any compensation awarded.
Public Liability insurance doesn’t cover any injury to yourself or your employees. It also doesn’t cover you if one of your employees sues you. These events would be covered by Employer’s Liability insurance.
Do I need Public Liability insurance?
It is not a legal requirement to have Public Liability insurance. However, without it your business could be bankrupted if a claim was made against you and you didn’t have Public Liability insurance to protect you. The legal costs associated with a claim and any settlement awarded could be high. Even if you win a legal case it’s unlikely that the damages awarded to you would cover all your costs.
If your business interacts with the public during the course of the working day, it’s important to have Public Liability insurance. It could be that customers and suppliers visit your premises or you meet them at theirs. If something happens during the course of one of those visits and it’s your fault, you’ll be deemed liable for any costs arising as a result.
In some instances other businesses may only agree to work with you if you have Public Liability insurance in place.
How much Public Liability insurance do I need?
The amount of Public Liability insurance you need will depend on a number of factors. These include:
- The size of your business
- The type of work you undertake
- The size of projects you work on
- The risks your business is exposed to
- How much of your work involved interactions with the public.
The minimum amount of Public Liability insurance a business would take out is £1 million, rising to £10 million or more. We would look at the risk factors for your business and advise accordingly. However, Public Liability insurance is inexpensive and, with soaring personal injury claims and the increase in the amounts awarded in compensation, we would recommend that you buy as much cover as you can afford, at least £10 million cover.
Please call Tom Cowap or the team on 020 8290 9080 to talk through your Public Liability insurance needs. Alternatively, you can email us at firstname.lastname@example.org