What protection does public liability insurance provide to a business?
Public liability insurance is designed to protect a business in the event that a member of the public (or their representative) claims that they have suffered:
- A loss as a result of your business activity
- An illness as a result of your business activity
- Injury or death as a result of your business activity
As with Employers Liability insurance, the level (or value) of cover provided can vary, with policies typically starting with £1m of cover. Public liability insurance will pay out against:
- Legal costs incurred in defending a claim, whether the claim is genuine or not.
- Any compensation payment that is rewarded to a member of the public in the event of a successful claim against your business.
In reality, accidents happen in even the best-run businesses. What’s more, any business could be on the receiving end of a spurious claim. Even where a claim is eventually disproven, it’s likely that the business will have run up significant costs in defending the claim. Having the right and appropriate level of public liability insurance in place means that in just such circumstances, you can have the peace of mind that comes from knowing that you’re protected.
When might a public liability claim arise?
One example of when a claim could arise is as follows; One of your suppliers whilst visiting your premises trips over an electrical cable and injures themselves. Your public liability insurance policy will help you should you find yourself legally liable.
Your team are working onsite using burning equipment. The adequate fire prevention precautions are not taken and a fire breaks out causing extensive damage. It is deemed to be the responsibility of your business and as a result you are liable for the damage.
There are endless scenarios that could lead to a claim being made against you and you can never tell when one might arise. The best way of limiting the damage is to have adequate cover before the unthinkable happens.