Business building, Starting and running your business
Everything you need to know about Public Liability Insurance
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Firstly, What is Public Liability Insurance?Public Liability Insurance is one of the most important forms of business cover you will need to invest in as a business owner, as it covers everything from accidental property damage claims by clients right through to personal injury compensation claims made by third parties, clients or even members of the public. Protecting your business against a wide range of claims, Public Liability insurance covers all of the legal costs associated with claims made against you for compensation, following an injury or damage claim.
Know Where You Stand – What Does Public Liability Insurance cover?Claims against Public Liability Insurance are extremely diverse, especially as this type of cover is required across a broad range of different sectors, and can include everything from a member of the public becoming injured, exposed to an illness or disease, through to expensive pieces of equipment being damaged. It basically protects you against any third party, client or member of the public that will pursue legal action against your business for financial compensation. Here’s a look at some of the most common claims:
Slips and TripsNo body likes to think the worst will happen, but if it does, it’s important that your business is protected. For example, if a customer, client, or member of the public slips or trips whilst on your premises, or if equipment is misplaced or damaged, your Public Liability Insurance can be claimed.
DisrepairAlthough you are responsible for maintaining your business property, due to circumstances outside of your control, it’s not uncommon for accidents to happen, causing disrepair to your interiors and equipment. The good news is… your Public Liability Insurance will cover you for everything from broken doors and damaged carpets right through to damage caused by tree roots or protruding floor boards.
AccidentsWe’re all human and accidents do happen from time to time, which is another reason why having the right cover is so important as it will protect you in the event of an accident or accidental damage. Of course, we have only just touched the surface, Public Liability insurance will cover you for a lot more too, so it’s worth discussing your policy requirements with the insurance company directly.
Do I need Public Liability Insurance?One hundred percent! No matter what type of business you are, you will need some form of Public Liability Insurance, regardless of the sector you work in or the size of your business. With this in mind, it should be one of the first things you look at when launching your business. Basically, every business that has clients and customers visiting their premises or home, or even businesses taking on new contracts with local councils should have Public Liability Insurance.
But is it a legal requirement?Although its not a legal requirement, it is extremely important as should the worst happen, it’s not uncommon for claims to go into the thousands or even millions, leaving businesses with no cover substantially out of pocket.
Is Anything Excluded From Public Liability Cover?Like any insurance policy, there are a number of scenarios that you will not be covered for. With this in mind, when it comes to finding the right policy for your individual needs, it’s vital that you check what your policy covers you for, as many policies come complete with a number of exclusions as standard. Here’s a close look at some of the situations that your policy is unlikely to cover you for:
- Damage to your own property.
- Damage that is a result of advice, design, or specification, unless provided as part of an overall contract.
- Deliberate acts of damage or injury.
How Much Public Liability Insurance Do I Need?Businesses come in all different shapes and sizes, so the type of Public Liability Insurance you will need depends on a number of different factors, including the risks that you face as a business, the products and services you offer, as well as the type of clients you work with. As a general rule of thumb, the vast majority of businesses opt for insurance cover that protects them for amounts between £2 million and £5 million, however you can take out cover that will protect you for amounts of £10 million and more.
Different PackagesYou’ll quickly discover that there are a whole host of different Public Liability Insurance packages available, meaning you will be able to protect your business based on your bespoke needs. Trade Direct Insurance offers a whole of essential packages including: Essentials This package offers limits of £1million, £2million, or £5million, covering businesses with up to 15 employees and a turnover of up to £1.5 million. If you have employees, this level of cover automatically includes £10million of Employer’s Liability cover, including 100 days of Temporary Employee cover. Classic This option extends the Essentials cover with an additional £1,000 of tools cover for the first employee, which can be increased to £1,500, as well as Professional Indemnity cover of up to £50,000 to help you cover professional advice. PlusThis cover builds upon Essentials and Classic insurance by including Personal Accident cover, designed to pay a weekly sum if you are unable to work as the result of an injury sustained at work. If you need Public Liability Insurance, it’s certainly worthwhile getting in touch with Trade Direct Insurance to discuss your requirements to ensure that you get the right cover for your needs.
Founder and editor of www.motherswhowork.co.uk, a mother of two wonderful children, wife, entrepreneur (check out www.geekschool.co.uk) and journalist.