What is public liability insurance?
Public liability insurance can cover legal expenses or compensation claims if your clients, suppliers or a member of the public suffers a personal injury or property damage because of your business.
Having public liability cover is fundamental if you have visitors to your premises, or if you visit other sites to carry out your work.
Do I need public liability insurance?
Having public liability insurance reassures your customers that both you and they are protected in the unlikely circumstance that things go wrong. It’s not a legal obligation to have public liability cover under UK law, but your industry regulator or professional membership body might require you to have it.
Ask yourself these questions:
- Do I have employees? If so, you’re legally obliged to have public liability cover.
- Is my business insured for the right things? If you work at heights above 10 metres, you may not be covered.
- Do I have the right level of cover? If you’re working on a contract for a public body or larger company, you may need a higher level of cover that’s acceptable for your customer or client.
What does it cover?
Public liability insurance covers your business against compensation claims and any legal costs if a third party suffers injury or property damage while on your premises, or while you’re working on theirs.
Public liability insurance covers:
- Compensation payments for third party injury, or death.
- Repair or replacement costs for damaged property or possessions
- Medical fees
- Legal expenses
How much cover do I need?
Simply Business’ public liability policies offer a minimum level of £1m. Depending on the nature of your business and customer/clients needs, you might require a higher level of cover to make sure that both you, and your business are protected.
It’s best practice to check your policy when you take on a new job or contract. For example, companies working on government contracts are required to have a minimum of £5m or even £10m in insurance.