What is Public Liability Insurance?

A claim might be filed against your company for a variety of reasons. If your job requires you to interact with the public on a frequent basis, you should consider purchasing a policy.

What is covered under public liability insurance?

Personal harm

When you cause harm to a member of the public, a client, or a contractor as a result of anything you did or did not do. If the wounded individual has been forced to miss work or is no longer able to work, your coverage may reimburse their lost wages.

Property damage

This may entail clothing and possessions being damaged.

Legal expenses

When someone files a claim against you, you almost always need to hire a lawyer. Even if you accept fault right away, legal fees will be incurred. If the matter is complicated or contested, these costs can quickly build up.

What is not included?

Professional indemnity insurance and employers' liability insurance are not the same thing as public liability insurance. That is, it does not protect you against claims for loss or damage made by your staff, nor does it cover you for costs incurred if you make a mistake or are irresponsible in your work for a client, causing them harm.

Who is eligible to submit a claim?

It could be a client or customer, a contractor, or a member of the public, acting on their own behalf or on behalf of their property.

What circumstances can give rise to a claim?

Anything that causes an injury or loss and can be proven to be your fault as a result of something you did or did not do.

As an example, consider a shop accident.

If a customer stumbles on your store's wet floor and suffers a back injury, and no warning notice that the floor was wet was displayed (i.e. something you did not do), you could face a lawsuit.

Compensation for the injury and loss of earnings, as well as any other loss experienced as a result, could be included in the claim.

Accident on a construction site

If you dropped a piece of scaffolding by accident, causing injury or damage to someone or something below (i.e. something you did), you may be able to file a claim.

Depending on the circumstances, the claim could be for personal injury, garment damage, or car damage.

Is it necessary to get public liability insurance?

Most firms are not required by law to have public liability insurance. That does not imply you may disregard it; a claim may still be filed against you.

Does the work I specialise in influence whether or not I require it?

Regardless of the type of business, if you provide a skill or service that entails coming into touch with the public, you should consider public liability insurance.

Accidents can happen even if you do not work with or near members of the public. If you are unsure, consult your trade body or association to find out what is expected in your business.

Is it customary for larger clients to demand public liability insurance?

Before they can work with you, several industries and clients will require you to carry a certain level of public liability insurance. This is frequent in building and government projects.

Having public liability insurance shows potential clients that you take a professional approach and can be trusted to perform responsibly.

Is it worthwhile to purchase public liability insurance?

Yes. Injury or property damage claims can cost tens of thousands of pounds. They have the potential to cause major financial challenges for small firms.

Before you dismiss the idea of insurance, consider whether the risk of not having coverage is worth it.

What level of protection do I require?

This will be determined by the nature and size of your company, as well as the risks associated with the work.

Some public sector entities and construction clients may demand at least £5 million in public liability insurance.

Most craftsmen and small businesses will need between £1 million and £10 million.

Best Chartered Accountants in Croydon has been providing assistance to local businesses. Yes, we can trace our roots all the way back to World War II, and we take great pride in our age.