Public Liability Insurance Cover Explained

Public liability insurance covers any accidental injury or damage to a third party or their property caused by you or your employees or your business. It also covers any related legal fees, costs and expenses as well as costs of hospital treatment (including ambulance costs) that the NHS may claim from you.

Public liability insurance does not cover claims made against you by employees; you will need to ensure you have employers' liability insurance.

Public liability insurance is there to protect you. If your business deals with members of the public, if they come to your premises or you go to theirs (including if you work from home) you should think about making sure you have public liability insurance.

Every year, over £1 billion is paid out in public liability claims  - Public Liability Insurance claims are often extremely high, sometimes running into the hundreds of thousands.  This means that a business which isn't covered could be in serious financial trouble if it found itself liable to pay damages or compensation from its own pocket.

Generally speaking, public liability insurance is not a compulsory insurance for businesses, but many customers require proof of valid public liability insurance before allowing work to be undertaken.

Typical levels of liability insurance are £1,000,000, £2,000,000, £5,000,000 or £10,000,000.

The level of public liability insurance required depends on the size and nature of your business activities, and there are conditions and exclusions that differ between policy providers.

It is therefore important that you discuss your public liability needs with one of our specialist insurance advisers to ensure that you get cover to meet the unique requirements of your business.

Public liability premiums are based on the type of business and rated on an estimate for the level of activity of the business. For most businesses this will be the turnover, although other factors may be used. For example, public liability premiums for a hotel might be calculated on the number of rooms to reflect the number of guests.

To find out more or to get a public liability insurance quotation, contact one of our specialists to discuss your requirements and receive a tailor made policy.