Insurance, Liability & Indemnity

What is Public Liability Insurance and Why Do I Need It?

Business Advice | 5 December 2022 | 1 year ago

As a business, it’s important to protect yourself if something goes wrong. After all, there is no knowing when a customer could injure themselves in your store, or when a client’s property will become damaged at the hands of your business. With public liability insurance, you are covered. A lot of businesses choose to go without public liability insurance and, as it’s not a legal requirement, there is nothing technically wrong with doing so. However, you could find yourself out of pocket and struggling with legal fees if an injury were to occur to a customer or client at your premises. Below, we have taken a look at the ins and outs of why public liability insurance is important for all businesses.

What is Public Liability Insurance?

If a third party brings you to court after an accident, public liability insurance will help you out with the legal costs and any compensation that you have to pay. This includes someone claiming personal injury, death or damage to their personal property. It covers compensation claims, legal expenses, medical fees and the cost to repair any damages. It does not cover you, your property or your employees.

What Does Public Liability Insurance Cover?

Public liability insurance covers a lot of things, and they are all to do with third parties that your business comes into contact with. This could be a customer or client, or a member of the public who is visiting your business premises. If any of these people are injured by your business – for example, if they trip over a loose wire or slip over on a wet shopping aisle – public liability insurance will cover the cost of any claims brought against you. Public liability insurance also covers the loss or damage of third party property, such as broken equipment that belongs to a contractor.

How Much is Public Liability Insurance?

There is no ‘one size fits all’ cost for public liability insurance, and it’s based on a lot of considerations. The amount of cover can depend on a range of variables such as the size of your business, your claim history and the level of associated risk. For example, larger businesses are likely to spend more on public liability insurance, as are those with a higher chance of personal injury or damage occurring.

Why Does My Business Need Public Liability Insurance?

Unlike some other types of business insurance, public liability insurance is not a legal requirement. However, it can protect your business if you are in contact with third parties, as most businesses are. Public liability insurance is there to protect you financially if clients, customers, contractors or the public make a claim against you.

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