If you are a business owner, you probably know everything about public liability insurance. What?! You’re not sure? Now, that’s something we need to address immediately! It’s similar to medical insurance you buy because you have to be safe, but you still hope you will never use it. Public liability insurance is something like that, but for other people. Confused? Here’s the clarification: public liability insurance will protect your business in case you cause an injury to a member of the public, or to property belonging to another business or individual. See? You really hope to never use it!
What Does Public Liability Insurance Cover?
A public liability insurance policy will protect your firm from claims made by third parties, and here we mean claims for injuries to the person, or damage or property caused as a result of your business activities. For example, such a policy will cover the cost of putting right any damage that has been made, or medical fees in case of injury. It will also cover the potentially enormous costs of having a legal representation for your business. Any related expenses to having a legal representative are known to be super high.
On the other hand, public liability insurance does not cover claims made by any of your employees. Of course, you need to make their workplace safe and secure, but this is done with another insurance, namely the employers’ liability insurance for small businesses. If you have employees, you are legally required to have this cover in place. Should you fail to comply, the penalties will be severe, so you better arrange this insurance as soon as possible.
Is It Compulsory?
Some businesses are exempt from a legal requirement to obtain public liability insurance. However, if your business interacts with members of the public in any way, you should consider this insurance essential. If your customers are receiving deliveries, or if you have clients visiting your work premises, those situations are all considered interacting with the public. Even if your business is based at your home, consider public liability insurance if you also use your home as a meeting place for anything relating to work.
If you want to check with an expert whether it would be a good idea for your business, find reliable and trustworthy public liability lawyers who will help you determine your exact circumstances.
The Costs and the Limits
When it comes to how much public liability insurance cover you will take out, you are left to decide on your own. Generally, people usually choose cover in line with the type of business they run, as well as the limit of protection that their trade may require. If you don’t know what the amount of cover that your business requires is, check with your broker or insurer. They probably know what the guideline amount for your occupation is.
Common Policy Exclusions
Most insurance policies come with reasonable exclusions. Some of the more common policy exclusions for public liability insurance are the following:
- Property belonging to you as the insured
- Deliberate acts
- Defective workmanship
Of course, these exclusions may vary from insurer to insurer. To be sure if your public liability insurance policy covers you for a particular aspect of your business, always check this information with your insurer or broker before buying. No one likes unpleasant surprises, and being informed is the key.
If you run a small business, you may fall into the trap of assuming you don’t need public liability insurance because you don’t make deliveries, for example. But as we’ve shown above, something as simple and annoying as a spill over a client’s computer, or a loose nail causing a customer to trip while visiting your office, could cost you an enormous amount of money if you’re uninsured. Bear this in mind, because accidents do happen even if every practical measure against them has been taken. As we said, better be safe than sorry!