Public liability insurance is an important cover for most types of business. So, what is it? And why might you need it? Read on to find out.
Public liability insurance explained
Public liability insurance is an important cover for lots of businesses. It can protect you against claims made by clients or the public.
It’s especially important for your customers to know that both you and they are protected with business insurance for when things go wrong.
What is public liability insurance?
As a definition, public liability insurance can protect you against claims made by clients or members of the public following a financial loss or injury caused by your business. It can cover the compensation payment plus any legal expenses.
Why is public liability cover a good thing for customers?
There’s always the chance of accidents happening, even for the most careful and attentive business owners. With the right cover, a business can operate knowing that if things go wrong, their customers’ property could be repaired, their possessions replaced, and their medical costs paid for.
What does public liability insurance cover?
You can usually tailor your policy and protection to your business needs. But as a guide, the insurance covers your legal liability to pay compensation to members of the public for death and injury, or damage to their property or possessions, resulting from the activities of your business.
For example, if you run a cleaning business and a customer slips and hurts themselves on the floor you’ve just cleaned, this cover could protect you. Public liability insurance can help make sure that the company can meet the cost of the claim, along with any legal expenses.
Read more about what public liability covers.
Customers might check your business has this cover
Any business that has visitors to its premises or carries out work on client sites should consider public liability insurance. Customers might ask to see your insurance schedule and documentation before taking you on.
Check out our business insurance FAQ for more information.
Other types of insurance businesses should consider
Employers’ liability insurance – if you employ staff you’re usually required by law to take out employers’ liability insurance. It can cover claims made by employees if they become ill or are injured as a result of working for you.
Professional indemnity insurance – if you give advice or provide a professional service to your clients, you might want to consider professional indemnity insurance. It’s an important cover for businesses including accountants, surveyors, and consultants, and can cover claims for negligence or a mistake that’s left the client out of pocket. These include:
- Loss of documents and data
- Unintentional libel, slander, or defamation
- Unintentional infringement of intellectual property rights