Even companies with perfect health and safety records and fantastic due diligence have to deal with accidents every now and again. Despite your best efforts it isn’t always possible to avoid every potential risk and accidents do still happen. If your business activities result in a client or even a member of the public being injured or if they lead to damage to property, your company could see a legal and/or compensation bill coming its way. Your public liability insurance protects your company from these costs so you need to make sure you have the right level in place for your business.
What Level of Public Liability Insurance is Right for my Business?
Standard public liability cover ranges from around £1 million to £5 million although higher levels are possible when required. The level of cover your business needs will be dependent on the risk of your business rather than its size. If you provide basic administrative office-based support for a business the risk level is much lower than if you’re carrying out a higher risk job such as something relating to the electrics or gas supply of a premises.
Some clients you work for will have a minimum public liability insurance amount in place. Airports and government and council contracts often have a minimum £5 million cover attached to any contracts. Very expensive environments such as sports stadiums may require even more insurance cover and so it is important to read through any requirements before bidding for a contract, or checking with your insurer you can increase your cover to the necessary level.
Some insurers offer your public liability in a bundled packed with employers’ liability and professional indemnity insurance as these are often bought together. You may find this works out best for your circumstances but if not you can discuss each individual type of cover with your insurer, especially if you need particularly high cover in one area.
Ensuring you have the right amount of cover means you don’t have to worry any more than necessary if an unfortunate accident does occur. It is never a nice experience but not having to worry about where you are going to find the funds to pay for legal representation and potentially compensation is a definite weight off the mind.