What happens when you don’t have public liability?


Public liability insurance is a way of protecting your business against expensive claims arising from third party property damage, injury, illness and even death.

If a member of the public suffers one of the above circumstances either on your business premises or whilst you are visiting another property through the course of your work, you may face litigation.

What happens if you do not have cover?

In the event that a claim is filed against you, you will be notified by courts. You will then be obliged to hire a solicitor who will collect evidence on your behalf to generate an adequate defence against the claimant.

Any costs associated with the claimant’s injuries and overall losses will have to be paid in the event of a successful claim. You will also have to pay all court fees, medical expenses, and legal costs to all parties involved.

If the claim is unsuccessful, you may be able to claim back your losses, however there’s no guarantee that you will be able to claim them all back.

You may be able to recover a portion of your expenses from the claimant, but these are rarely repaid in full.

What happens when you do have cover?

The only thing you will need to do in the event of a potential claim is notify your insurer – you won’t even have to cease trading during any investigations.

You will have to provide all relevant information to your insurance provider and to your solicitor regarding the nature and circumstances of the claim.

Many fees, such as court fees, compensation and medical expenses could be covered meaning that there will be very little financial suffering as a result of of a claim.

If the claim is unsuccessful, your insurance provider will also seek to recover the total amount of expenditure caused by the claimant.

Ultimately, the decision to take out a policy lies with the business owner – for many businesses public liability is not a legal requirement however you may consider it an essential form of cover to protect your business.

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.

Need a quote? Give us a ring on 08081686868.