What is public liability insurance?
Public liability insurance protects your business if it’s held responsible for personal injury to a member of the public, a client or other visitors, or for damage or loss to their property.
For example, it may be able to cover you if:
- a customer slips over and injures themselves in your shop or cafe
- a tool, ladder, or something else injures a member of the public or damages their property (such as a car or laptop) during the course of your work
- you make a mistake in your work (such as using the wrong equipment or fitting something incorrectly), which results in further damage
The cover helps pay for any associated legal fees for defending a claim, including the cost of a solicitor, as well as compensation costs, including medical fees after injury, compensation to beneficiaries after accidental death or property repair bills after damage.
Why is public liability insurance important?
Even though public liability insurance isn’t a legal requirement, it’s still an important form of insurance for many different kinds of businesses to have. Whether you regularly have customers visit you, such as a shop or café, or you regularly work in people’s homes or in public spaces – as a window cleaner or builder, for example – there is always a risk that a member of the public or their property could be involved in an accident as a result of your work.
In an ideal world, you wouldn’t ever need to make a claim on a public liability insurance policy. However, accidents can happen, so if a member of the public gets injured or their property gets damaged and they make a claim against your business, having public liability cover will give your business some protection.
It can cover compensation costs, legal fees, and other related costs.As these costs could add up to tens of thousands of pounds or even more, depending on the incident, taking out public liability insurance can give you peace of mind that you’re covered should the worst happen.
Public liability insurance is particularly important to have if you’re a member of an industry body or you work with certain clients, as you may not be allowed to do your work without this cover.