The Public Liability Insurance Blog

Compensation culture thriving says YOUR Insurance

Compensation cultureSmall businesses and trades people are increasingly using insurers to help fight negligence claims from members of the public, says specialist online provider

According to YOUR Insurance, around 35%* of its liability claims – from firms being sued for compensation – are withdrawn once legal proceedings begin and investigations find negligence did not cause the accident. This is up from 28% in 2011 and 23% in 2010.

Although ‘having no case to answer for’ takes the top slot for withdrawn claims, they can also be rejected due to;

  • Undertaking undisclosed activities - for example, scalding someone with hot drinks when your policy says you run a bookshop or being on a roof when you’ve said you’re a plumber.
  • Admitting liability without speaking to the insurer first (making it impossible to defend in court).
  • Poor property maintenance - such as claiming for water damage when holes had been in the roof for a while.
  • Misunderstanding policy terms - a worker calling in sick does not merit a business interruption claim.
  • Non-disclosure – failure to advise of previous convictions, insurance refusals and bankruptcy.
  • Poor record-keeping – particularly risk assessments, health & safety and training.

YOUR Insurance Marketing Manager, Annie Plaskett, comments: “The increase in cases where there are no grounds for a claim suggests the compensation culture is thriving. It’s not often clients are pleased to have their claims withdrawn, but in these cases it’s a huge relief.

“Proving negligence, particularly in personal injury claims, can take time and money. If the insurer hadn’t investigated the claim’s validity, the business or trades person may have paid out, with devastating financial consequences.”

To find out more about public liability insurance and what it covers, visit or phone 0800 107 8949.


Notes to Editors

* YOUR Insurance, 2012, 2011 and 2010 rejected liability claims statistics.

YOUR Insurance was set up in 1997 as a specialist online business insurance provider, sourcing cover via a panel of market-leading insurers.

YOUR Insurance is part of Towergate Underwriting Group Ltd - Europe's largest independently-owned insurance intermediary offering over 200 specialist insurance products. It’s authorised and regulated by the Financial Conduct Authority.

Media Enquiries

Annie Plaskett, Marketing Manager, YOUR Insurance, T: 01483 448741 or E:

Francesca Breeze, Freelance Journalist/PR Consultant, T: 01273 421115, M: 07710 963838 or E: