Public Liability Insurance

Insure against claims from the public with Public Liability Insurance

What Is Public Liability Insurance?

This is one of the basic insurance policies all businesses should have in this increasingly claims orientated, litigious society. If members of the public or customers come to your premises or you or your staff go to theirs, even if you work from home, you should think about taking out public liability insurance.

What the insurance covers

Public Liability insurance (PL) will cover you if someone is accidentally injured by you or your business operation. PL insurance covers any award of damages given to a member of the public because of an injury or damage to their property caused by you or your business.

It also covers any related legal fees, costs and expenses as well as costs of hospital treatment that the NHS may claim from you.

There are many conditions, exclusions and warranties that can be applied to Public Liabilities policies. It is therefore important that you discuss your policy with your insurance adviser to ensure that it meets your needs.

Other Public Liability Considerations.

Public Liability insurance is not legally compulsory except for a few special businesses but we strongly recommend you take out cover or discuss the matter with your insurance broker.

Public Liability cover does not include damage done by your product. For this cover you need Product Liability insurance.

Your other insurance may cover Public Liability for example visits to your home office may be covered by existing property insurance (as long as the insurer knows you are running a business from home). Where you insure your contents, business or premises, make sure that property owners’ liability is included in at least one of these policies or get separate PL cover.

Premiums are usually based on your type of business and estimated levels of activity for the business. Claims records may also get factored in.

This type of insurance will only cover third party claims not your own employees. You need Employers Liability Insurance for your own employees and that cover is compulsory.

You should always ensure that your insurer knows what type of business you run and inform them if your circumstances change.

Sometimes you can get public liability insurance through a third party organisation. E.g. if promoting a cycle race, joining the national cycling union BCF, may be the easiest way to get public liability insurance for that event.