Public Liability Insurance Products

Public Liability insurance provides coverage against any costs from legal expenses or compensation that arises if a third party is either injured or has their property damaged while on someone’s business premises.

 

If an accident occurs on a premises that is uninsured then the compensation costs will have to come directly from the business. Public Liability insurance will cover those costs during the process of a claim.

All businesses run the risk of a compensation claim. It doesn’t matter what type of business it is as long as it is a premises frequented by any type of visitor. Business premises can include an office building, a home office or any other type of premises where business-related activities take place. If a member of the public (non-staff member) is visiting the premises then Public Liability insurance is recommended. Whether your visitor is a customer, client or delivery service, any accident or damage that occurs, no matter how minor, could result in a lawsuit.

 

Small businesses and sole traders are just as recommended to take out a Public Liability insurance policy as a larger firms so that any legal fees or damages can be covered easily without financially disrupting the business.

 

While Public Liability insurance is not a legal requirement, some companies or events may require business to have it before agreeing to do business with them.

Public Liability insurance policies cover the business from any compensation claims made against it. If a visitor to the business premises suffers an accident or injury then Public Liability will cover any legal expenses if a lawsuit is taken out, any medical expenses as well as any damages awarded to pay. The same applies if a third party’s property is damaged while visiting a business. Public Liability insurance will also cover the costs of any repairs or replacements required.

 

Items such as computers, business equipment or tools are among the most common items that are accidentally damaged on business premises. The costs of replacing and repairing them can reach thousands, especially if they are essential to the working practices of the claimant.

 

If a claim is made because of negligence from the owner of the business premises then a fine may also have to be paid. This will also be covered by Public Liability insurance.

While Public Liability insurance policies are primarily concerned with damage to persons or property, there are several areas not generally covered by most Public Liability products:

 

• damage to business property
• damage to property whilst being worked on
• bodily injury of person working for the business

 

Public Liability is aimed at covering claims made by people not working for the business. Commercial General Liability or Employers Liability insurance policies are more suitable for claims made by employees, business owners or other business personnel.

Depending on the type of business will depend on the amount of coverage needed. Someone operating from a home-based business will need less coverage than a business with multiple locations. However the main areas that need to be considered when calculating coverage limits are:

 

• type of trade or profession
• business turnover
• number of visitors to the business premises
• how ‘public’ the premises is