What is it?
Public liability cover protects you from claims brought by members of the public, clients or contractors against your business, for accidents that have occurred as a result of something you (or your employees) have done. While Public Liability cover is not compulsory there is often a contractual requirement for businesses to have it in place.
Who needs Public Liability cover?
Every business should be protected with Public Liability cover. Accidents can happen and however careful you are in creating a safe work environment you cannot eliminate the chance of something occurring that may result in a claim against you; for example someone getting injured by slipping on a recently cleaned wet floor on your premises.
Even those businesses that don’t have their own premises may require Public Liability cover. If you cause accidental damage while at a client’s property (for example a delivery man ripping the wallpaper when carrying a photocopier up a flight of narrow stairs), Public Liability insurance would cover you against such a claim.
What does it cover?
Public Liability insurance will cover you against claims made as a result of damage to property or injury to your clients, contractors or to members of the public, where your business is at fault. The cover will also include any legal costs associated with defending a claim.
You are covered up to the indemnity limit stated on your policy so it is important to set this limit at the right level as your liability is not determined by this amount. For example if you are facing a claim for £10m but you have only arranged £1m of Public Liability cover, your policy will only cover you for £1m and you will still be liable for the remaining £9m.
It is also critical that you accurately state the nature of your work in the Business Description section of your policy as you are only covered for claims made in the course of your normal business activities.
What having Public Liability insurance means to you
Any business, regardless of their size, can suddenly face a crippling legal bill and compensation as a result of a claim made against them for personal injury or damage. By having the right Public Liability insurance in place you have the peace of mind of knowing that any such claim will be covered.
"All great work is preparing yourself for the accident to happen"