Overview of Public Liability Insurance
Public liability insurance covers legal costs and compensation if your business injures someone or damages their property. It protects you from costly claims but isn’t required by law in the UK. If your business causes injury or property damage, public liability covers the costs. For example, if a customer trips in your shop and breaks their arm.
Typical cover starts from €2.6 million. As a self-employed person with employees, you need employers’ and public liability insurance to cover employee injury claims. Public liability insurance protects if another organization sues you after an incident involving injury or property damage. Your insurer pays to replace customers’ property, cover medical costs and loss of income.
The average UK premium is £119 but some small businesses pay less. Legal expenses, compensation, medical costs and loss of income may also be covered. To reduce costs, implement safety measures, increase excesses and lower policy limits.
Key Coverage Details
- It covers claims by the public for medical and other costs from injuries, death or property damage involving your business – like customers, visitors and delivery people.
- Your insurer pays up to the limit listed, usually £1-5 million.
- ‘Each and every claim’ means each claim has its own limit. If several claims relate to one cause, the total limit applies.
Considerations for Public Liability Insurance
- Even good businesses can face third party claims.
- Employees can cause accidents and mistakes despite supervision.
- Enough cover caters for as many scenarios as possible.
Additional Coverage Considerations
- It may cover property damage, personal injury, legal costs, and tool theft but not building materials.
- Property damage means if you damage a customer’s possessions.
- Personal injury covers if someone gets injured on site.
- Tool theft isn’t covered but some policies offer it as an optional extra.