What does public liability cover?

Pre-occupied multiple business owners line up in front of a Business Insurance claim form

Public liability insurance could financially protect your business from successful claims made against you by a third-party, such as customer, client or member of the public.

Despite being extra careful with following the rules and regulations, accidents do happen, and in many cases your business can be blamed.

It’s not every day a claim will be made against you, but all it takes is one to have a significant impact on both you and your business. The repercussions could be severe on both your reputation and your bottom line.

If your business operations were to injure a member of the public, cause them to become unwell, expose them to a disease or damage their belongings in any way, they may decide to pursue legal action against your business.

During incidents such as these, having a public liability insurance could be beneficial in helping to cover the costs associated with a claim including legal fees, damages and compensation.

For most business, it is not a legal obligation to hold a public liability insurance policy; however for many industries it will certainly be advised, especially the construction and retail sectors.

Examples of incidents likely to result in a public liability claim:

• A member of the public incurs injury on an unattended construction site. The business could be found at fault for failing to ensure the site was securely shut off from the public.

• Whilst painting at a private property, ladders fall over and break a dining chair belonging to the owners of the property. The business could be sued for damage of property.

• Removing tiles off the roof of a building without any protection around the edge. A tile slips and hits a member of the public. A claim could be made for neglect causing injury.

• A plumber has wrongly fitted a pipe in the bathroom of a private property which floods the house. The tenant could claim in order to replace their damaged property.

• Whilst fixing the electrics of an office, one of their employees falls over a wire that was left on the floor. The electrician hired could be at fault for failing to work safely.

• Tools are left on the floor of a construction site and a member of the public trips over them as they walk past. A claim may be pursued for failing to ensure health and safety is in order at such a dangerous environment.

• A customer falls ill with food poisoning directly resulted to the fish served at a restaurant which was found to be improperly stored. The business would be at fault for failing to abide by food hygiene standards.

If you have any questions regarding a public liability insurance policy please call us on 08081686868.

Public Liability Insurance

This guide forms part of our series related to public liability insurance, for more guides, information or to get a quotation, please head over to our public liability insurance section.