Quick public liability insurance guide

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There's no point crying over spilled paint....

Here at constructaquote.com we understand that as a business owner you are understandably busy. That’s why we’ve put together this quick guide to help answer any questions you may have about public liability insurance. 

Public liability insurance cover can be purchased by large and small businesses alike that may come into contact with customers and members of the public on a regular basis.

Public liability insurance can protect a business from claims made against them by members of the public for accidental damage to property and personal injury as a direct result of their work or business activities. A claimant could potentially be a member of the public, a visitor to your business, a customer you visit or another third-party.

Also known as PL Insurance, public liability can cover the cost of damages, legal expenses and other fees incurred by a business during the legal process.

The usual level of cover for a business can range between £1million – £5million, however the ultimate decision lies with the company purchasing the policy. If you wish to purchase a higher level of cover, this can usually be arranged by brokers such as constructaquote.com offline. It is referred to as an excess layer and an additional £5million worth of cover can usually be added to a policy up to the amount of £10million.

It’s worth bearing in mind that claims for public liability can result in thousands of pounds, and with the economy in it’s current state and so many “no win, no fee” legal services around, you may wish to seriously consider purchasing a public liability insurance for your business.

What does public liability cover and do I really need it?

This type of liability insurance could cover the following types of claims:

• A member of the public becoming injured or even fatally injured as a result of your business operations, including the fault of one of your employees carrying out work on the company’s behalf.

• Third party damage to a member of the public’s property, for example damage to a house whilst carrying out plumbing or construction work for a client.

• A member of the public becoming ill due to company negligence, for example, should a customer contract food poisoning whilst in a restaurant they can claim damages against the business.

Although Public liability is not a legal necessity it could be considered essential – especially after a successful claim is made against a business. It is important to understand that if a claim is upheld against you, you could be held financially liable with or without insurance.

It’s also worth noting that many clients, consumers or companies could choose not work with a firm if they do not have insurance in place, especially in the case of tradespeople, construction and manufacturing businesses. It could provide peace of mind not only for yourselves but to customers and contractors also.

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.