What is public liability insurance?

Public liability insurance is designed to protect you and your business for the cost of a compensation claim made by anyone that has suffered injury or property damage as a result of your business or your product. Apart from protecting you against cost of compensation claims, it also covers the legal expenses aroused by the claims process.

This could be anything from clients tripping over your equipment on your premises, or suffering injury as a result of your lack of awareness when you are visiting their offices. Alternatively, it can cover you for damages to property. This comes handy, if a client or member of public were to claim you had damaged their property whilst visiting their premises.

Do I need public liability insurance?

If your offices are frequently visited by clients or other members of the public, or if you regularly work remotely, it is worth considering purchasing this cover. If you work from home, and you invite clients to your home - for collections, consultation or meetings - it is also worth considering public liability insurance.

Public liability isn’t required by law, however many businesses consider it worth getting it, as it protects them from compensations costs or to satisfy clients needs. This insurance cover protects you if you are sued by a client or member of public, which is why it is important if you regularly interact with customers or suppliers.

It is up to you to decide whether you or your business needs this particular insurance, but it is always worth considering the potential consequences if your business was sued and you did not have public liability insurance. It also worth checking whether clients or potential customers expect you to hold this policy.

Does public liability insurance cover employees as well?

By design, this particular insurance does not cover employees, it only protects you from third-party claims made by a member of the public. If your business has employees, you are legally obliged to purchase an employers’ liability insurance cover.

Cover information

• £5,000,000 any one occurrence, unlimited in the period of insurance
• £5,000,000 any one occurrence and in the aggregate in the period of insurance in respect of products liability and pollution
• Legal defence costs and expenses payable in addition to the limit of liability
• Option to increase limit of indemnity to £10,000,000

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Need more help? Call us on +44(0)20 7889 2900 or contact us via email at qoutes@hattonandberkeley.com