Public Liability Insurance – A Quick Guide

Introduction to Public Liability

Public Liability Insurance cover is a valuable purchase to small businesses, although it is merely an optional buy.

Public liability insurance provides added protection in the day-to-day running of a business. It allows businesses to trade freely with piece of mind that they are fully protected if an accident occurs. It should be considered if clients or customers visit the business premises or if work is carried out on someone else’s premises.

What does Public Liability cover?

Public liability insurance provides cover if someone is accidentally injured by the business operation or the person carrying it out. It will also cover damage to third party property.  If a claim is made, public liability insurance will cover any legal fees and expenses.

Liability claims can often run into thousands of pounds, and with so many ‘no win no fee’ services on offer, the purchase will have never been more relevant.

Who needs Public Liability?

Anyone and everyone could effectively see the benefits of purchasing public liability insurance cover.

Companies that are likely to have a claim made against them will be where accidents are of relatively high risk, such as:

  • Roofers,
  • Electricians,
  • Plumbers,
  • Painter and decorators,
  • Shops,
  • Manufacturing and even
  • Offices.

These are the trades where accidents are likely to occur. As an example, a member of the public could fall over something on the floor of a shop or office. A plumber or a painter could damage a member of the public’s property. These are typical examples of a claim.

What does it cost?

Depending on the type of business, public liability insurance is relatively low cost. There are numerous amounts of cover available and ultimately, the decision of how much cover is needed rests with the business. While a lower limit of £1 million may be appropriate for a ‘one-man-band’, £2 million or £5 million of cover may be more suitable for medium and large-sized businesses.

So, what will public liability cover protect against?

Public liability will safeguard the business from any claims made against them.

This type of insurance will only cover third party claims however. It will not cover any company assets or employees; in this case employers’ liability insurance would be required.

This business advice article was provided by is an online insurance quote comparison service dedicated to UK small business, working with a panel of the UK’s leading insurance providers, from Aviva and Fortis to MMA and AXA.

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