Do I need public liability insurance?

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Blackboard featuring two words written in white chalk: Risk and insurance with orange arrows drawn next to each word going in opposite directions.

It might be suggested that public liability insurance policies provide businesses with confidence and ‘peace of mind’ as they carry out their day-to-day ‘business as usual’ activities.

However, the decision on whether you need public liability insurance ultimately comes down to you. Only you can make the informed decision on whether it is right for your business.

As public liability insurance is not a legal requirement for most businesses it is essential that you understand just how beneficial it can be -especially if you come into contact with customers, member of the public or other third parties during the course of your work. The financial consequences of not having a policy in place could place a considerable strain on your business.

What so special about public liability insurance?

This type of insurance policy could financially safeguard your business from any successful claims made by clients or members of the public who suffer an injury or damage to their property as a direct result of your business operations.

The cost of a claim can vary significantly but could potentially escalate to tens of thousands of pounds or more. The decision you would therefore need to make when deciding if public liability cover is suited to you and your business is whether you could you afford to pay a potentially large sum in damages, compensation and legal fees – and your business still survive.

It’s important to understand that accidents can happen at any time,  no matter how careful you are. Some may even be considered unavoidable.

To explain further, we’ve put together a ‘window cleaner’ example of potential public liability insurance claims:

• A member of the public suffers a head injury because a window cleaner’s bucket had fallen off his/her ladder directly onto their head

• The bonnet of a car was damaged after a window cleaners bucket had fallen off their ladder

• A member of the public becomes ill or dies because a window cleaner put cleaning products into a glass which was then accidentally drunk in error, causing poisoning

To conclude, public liability insurance may be an optional purchase for many businesses but it should be considered as viable protection from potential hefty claim charges.

Public Liability Insurance

This guide is part of our series related to public liability insurance, for more guides, or to get a quote, head over to our public liability insurance section.