In an increasingly litigious society, even the healthiest businesses can fall victim to a single claim. Public liability insurance is designed to safeguard your company from a lawsuit resulting from an injury or property damage to a third party.
What is Public Liability Cover?
If negligence by you or an employee results in an accident to a member of the public, you will likely be liable for whatever costs are incurred by the injured. This includes medical expenses, personal hardship, and legal fees resulting from the claim. The total cost of such an incident can escalate into the millions of pounds. As a result, it is essential for most businesses to take out a public liability policy to protect them from a potential claim.
What Does Public Liability Cover?
Typically, a public liability insurance policy will cover any damages awarded to the claimant. This includes legal fees, miscellaneous expenses, and the amount you owe to the NHS for any medical treatment given to the claimant.
What Doesn’t it Cover?
Public liability insurance applies only to claims brought about by third parties and members of the public. In other words, it does not cover claims brought forth by your employees or staff members. For that, a separate policy called Employers’ Liability Insurance must be purchased. As such, the two offerings are often bundled together by insurance providers.
Who Needs Public Liability Cover?
For some businesses, the purchase of public liability is mandated by law. For others, it may not be compulsory by legal standards, but something clients expect when dealing with a business. Generally speaking, public liability insurance is ideal for any business that interacts with members of the public or third party clients.
Where Do You Obtain It?
Like most forms of insurance, public liability insurance can be obtained through the internet via price comparison websites. However, you can also use the internet to find a broker who can adequately assess the risks that are unique to your business. As no business is the same, knowing where you need coverage and where it is superfluous can help you maximise your savings. Many insurers may be willing to negotiate the cost of cover based on your situation.
Be sure that any broker you consult with is a member of the British Insurance Brokers’ Association (BIBA). Furthermore, any insurance company you deal with should be a member of the Association of British Insurers.
How Much Will it Cost?
The cost of a policy will depend on your business’ individual risk factors, as well as the claim history of your company. You may be able to lower costs by taking extra safety measures or having safety courses taught to your employees. Consult with your broker regarding the best way to keep costs down while at the same time protecting your business in the event of an accident.