Public liability is a type of business insurance. It covers the compensation costs and legal fees you are required to pay if a member of the public is harmed, or their property is damaged, because of your business activities.
This cover is particularly important if you:
Interact with customers, clients and members of the public face-to-face
Carry out work on client sites, e.g. a construction site, or your client's home or office
Work at events, fairs and markets
Have visitors to your premises
What does public liability insurance cover?
Public liability insurance can help to pay for a number of legal costs. Areas where a policy will help you include:
Compensation claims - if a person's injured because of your business, or their property is damaged, they may decide to sue. If their claim is upheld, you could be asked to compensate them financially for their suffering. If the accident was caused by your business activities, you'll be accountable regardless of whether it took place on your premises, theirs or at a third-party location.
Legal expenses - this helps cover the cost of any fees you might have to pay during a legal hearing, including the cost of getting a lawyer.
Cost of repairs - if something has been damaged as a result of your business, public liability insurance covers the fee for repairing the damage. For example, if you're a decorator who spills paint somewhere on a customer's property.
Medical fees - in the event of injury, reasonable medical expenses for rehabilitation and recovery would be considered.
Do I need public liability insurance?
It's not a legal requirement to take out public liability insurance but many business owners see it as an essential business expense, and it's required by many trade associations.
In many cases, you may find that you're asked to show proof of public liability before you're permitted to trade.
How much is public liability insurance?
There are several factors that impact the cost of public liability insurance. These include but are not limited to:
The industry you work in
The number of people who work for the business
Your health and safety record
The size of your business
Where you work
Any previous claims
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