Public liability insurance covers the cost of legal action and compensation claims made against your business if a third party is injured or their property suffers damage while at your business premises or when you are working. It is not required by law in the UK but it’s wise to hold enough cover to protect against any costly claim.
For example, if a customer trips on a loose wire on your shop floor and breaks their arm.
Typical limits for a public liability policy start from €2.6m. As a self-employed person who employs others, you will have a need to arrange employers and public liability insurance to cover claims made against you by employees who suffer injury at work.
Your insurer will pay to replace or repair customers’ property and cover their medical costs.
The average UK annual public liability insurance premium costs £119 but some small businesses pay less than that. To reduce costs, implement safety measures, increase excesses, and lower policy limits.
What’s Covered?
Public liability insurance covers:
- Legal expenses
- Compensation costs
- Medical costs
- Loss of income
It may cover property damage, personal injury, legal costs, and tool theft but not building materials. ‘Each and every claim’ means each claim has its own limit. If several claims relate to one cause, the total limit applies.
Legal Definition and Scope
Public liability insurance is also known as premises liability, covering accidents on your property. The legal definition includes coverage for:
- Personal injuries
- Property damage
- Death
- Loss_but only on your property
Businesses rely on employees who can still make errors. The coverage will depend on each business’s unique risks and liabilities.
You need it if customers could get injured or their property damaged through your business. Even with warning signs, a customer could slip and end up in court. If an incident occurs elsewhere, you’re not covered.
It also falls under commercial general liability insurance and business owner’s policy. Liability insurance costs $42 per month on average.
Note: The removal of redundant sentences and the phrasing within the list have been adjusted to maintain original meaning while avoiding repetition.