What does public liability insurance cover?

When it comes to business, no one wants to end up with a hefty compensation claim on their hands. There are, however, ways for your business to protect itself against third-party property damage and accidental injury claims. Public liability insurance is one of the most essential business policies. This coverage is a worthwhile business investment for when unexpected accidents happen, such as a fall or a visitor injuring themselves on your premises. However, what does public liability insurance cover in detail? Let’s find out!

What does public liability insurance cover?

In general, public liability insurance includes coverage for personal injury and property damage claims made against your business by clients, customers, contractors, and members of the public.

Public liability insurance can be divided into two types:

• Compensation - Your policy will pay compensation if your business is found liable in such a dispute (up to the policy's indemnity limit).
• Defence costs - A public liability policy covers your legal representation/defence costs if your business or an employee is sued for bodily injury or property damage.

Having adequate public liability coverage will protect you from financial liabilities and legal costs associated with an accident on your property. Public liability claims can cost businesses anywhere from hundreds of thousands to millions of pounds, so it's important that your policy covers at least £1 million. While this may seem like a lot, it's advisable not to under-insure—otherwise, you'll be the one responsible for paying any costs above your insurance policy's limits.

Do I need public liability insurance cover?

Sadly, accidents can happen—and compensation claims do follow.

If you own business premises that members of the public, customers, or clients visit, or are a sole trader you should strongly consider taking out public liability insurance. This is because if someone were to become injured or suffer damage to their property as a result of an accident on your premises, it could be costly for you to deal with any resulting legal action—and even if nothing happens, there's always the chance that something might happen one day and you need peace of mind that your business will be protected in those circumstances.

To determine how much protection you need from public liability insurance, consult an experienced insurance broker. As experts in the field, they will be able to assist you in choosing coverage that fully protects your personal assets as well as your business assets.

How much does public liability insurance cost?

Several factors influence the price tag—such as your industry, business type, your insurance claims history, and the amount of coverage you choose. Companies considered more risky will generally have to pay more for their public liability insurance.

Is public liability insurance required by law?

Public liability insurance isn't a legal requirement, but it is highly recommended. By law, all employees who are not members of your immediate family are required to carry employers' liability insurance. But public liability insurance is optional.

It's important to make sure that you have enough coverage to protect yourself from large bills if something goes wrong, so it's worth getting in touch with an insurer to discuss your options.

What happens if I don’t have public liability insurance?

Public liability insurance is the most important type of business insurance you can get—and it’s also one of the most affordable. If you don’t have public liability cover, any claims against you will have to be paid out of your own pocket – meaning that if one of your customers is injured or their property is damaged, all the costs of their claim will fall on your shoulders.

Don’t risk your business

At Bluedrop, we believe that every business is unique. That's why we offer customised insurance to help you find the right level of cover for your company, whatever its size. We take the time to listen to your needs and concerns and will arrange a quote to cover everything you need, including additional policy cover that is tailored to your business.

For business owners, public liability insurance is an important risk management tool that can protect your business as well as its workers and assets. If you want to find out more about public liability insurance read our guide to public liability insurance. 

Bluedrop has a long history in finding the right insurance at the right prices for our clients, and we'd like to do that same thing for you. If you're looking for affordable coverage that can provide you with the protection you need, it's time to talk with us and see what we can do for you. Enjoy the feeling that comes from knowing you have the coverage you need to tackle each day's challenges.