Insurance · 11 August 2015

Insurance in action – Public liability insurance for micro businesses

Customer-facing businesses such as restaurants need liability cover
Customer-facing businesses such as restaurants need liability cover

One of the best ways to understand insurance is to see it in action. With a clear idea about what a claim could look like, you’re better equipped to buy, so following on from our beginner’s guide to business insurance we’re taking a closer look at claims.

A popular cover that protects thousands of businesses, public liability seems a good place to start, so with the help of our experts here are some examples of the insurance in action.

A severed nail for starters

A customer came into a policyholder’s restaurant and placed an order for food. She searched for a seat, found one, and went to sit down. But as she did so, she trapped her finger and injured it pretty severely.

She’d trapped her finger between the seat’s padding and its metal frame, severing her nail in the process. She sought compensation so the restaurant’s owner enacted their public liability cover, with one of our insurers stepping in to help shoulder the costs.

Anticipated insurance settlement: £10,452

An unwanted water feature

As part of a job, a public liability policyholder installed a new boiler. However, rather than heating it up, it ended up leaking water.

They went back to fix this and a faulty fitting was to blame, leading to a public liability claim. Leaking water had left the property needing urgent repair, but fortunately their policy covered the damage so their insurer helped fund the fix.

Anticipated insurance settlement: £10,000.00

The £15,000 drop

Whilst replacing a roof light a policyholder fell through some plasterboard, causing substantial damage to the room below.

The costs of repairs were far too much for the roofer to shoulder alone, so he decided to claim on his public liability policy. The insurer accepted the claim and they’re set to support the clean up, easing the significant strain on his finances.

Anticipated insurance settlement: £14,639.00

Ultimately, public liability can protect every business – from tradesmen to restaurateurs. Not everybody needs it, but if you work with the wider public then it’s probably an essential, as you never know what’s around the corner – as these claims show!

Remember, if you have any questions for our experts then please don’t hesitate to get in contact with us at editors@businessadvice.co.uk and we can pass it on to them for a personalised answer.

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ABOUT THE EXPERT

Keith Lynn is a senior product manager at Simply Business, with almost ten years of experience – both working and studying – in the insurance industry. He has been with the company for four years as part of the products team. Much of his time is spent working with numerous insurers to improve the products they offer through Simply Business. Prior to his current role, he obtained a BA in International Insurance and European Studies at the University of Limerick.

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