What is Public Liability Insurance?

What is Public Liability Insurance?

Public Liability Insurance covers the expense of claims when your business activities lead to the injury of a customer, professional or member of the general public.

A public liability policy can likewise cover you and your employees when property damage occurs. Especially when working in a client’s house, office or business property. Under the Injury Expense Healing Act, the NHS is allowed to reclaim the cost of transferring and dealing with a patient in cases where personal injury compensation is paid. So if your service activities injure a third party, public liability insurance coverage will safeguard you from the expense of a possible NHS claim.

Why Do I Need Public Liability Insurance?

If your organization premises are frequently visited by customers, or if your employees regularly work off-site, it may be worth considering this type of coverage. If you work from home, you may generally assume you don’t require a policy, however this isn’t necessarily the case in every situation.

Say for example, you choose to take a marketing stand to a huge exhibition in order to promote your company. Throughout the exhibition one of the boards falls off and injures a passer-by– a humiliating moment might turn into an expensive one if that person chooses to take legal action against you or your company.

Likewise, if you frequently check out clients’ properties, or have access to their homes, serious thought needs to go into purchasing public liability cover, since if you accidentally damage their home you might have to pay the expense of fixing it.

It might be something as basic as knocking your coffee over your customer’s new MacBook, or as simple as your employee tripping over some cords in a client’s server room.

How Much Does This Type of Coverage Cost?

Costs can vary based on the extent of coverage. Be sure to discuss this with your insurance provider prior to you buying your policy, in order to evaluate exactly what level of cover provided is best for your organization.

Is This Coverage a Legal Requirement?

Selecting not to buy public liability insurance coverage will not land you with a prison sentence or any significant fines. Getting a public liability policy simply means you can let your insurance company deal with any issues, while you get on with running your organization.