Public Liability Insurance

This article looks at what public liability insurance is, why your business needs it and the approximate costs of insuring your business.

Public liability insurance covers you against claims made by the public, customers, suppliers or anyone else that your business comes into contact with because of something you, your business or your employees have done.

These days with the compensation culture some claims could run into millions if a third party is injured.

The insurance generally covers the expenses incurred, the cost to put things right, legal costs and any general compensation claims. Most policies start at £1 million and it’s there because of the massive costs of the legal system and the fact that people claim for anything these days to get additional “free” money.

Companies will provide you quotes and these are based on your turnover, the type of business you are in (as the risk is different for different businesees) the the location of your premises.

It’s best to get a few quotes like with any insurance cover you are seeking to not only compare the premiums and the overall value but what else you may receive such as a free legal helpline to manage the aftermath of any claims. larger insurers may be better to deal with but smaller one may provide a more personalised service you may require.

You should get cover if people visit your premises even if you work at home. What would happen if someone fell over, got jumped on by your dog or something fell on them from the ceiling. They would likely attempt to claim on your insurance under the assumption that “every business would have it” - if you haven’t then the legal costs and overall compensation may be something you can not afford.

This is not legal advice and you should consult a professional and decide on whether public liability insurance is right for you and your business circumstances.