Specialists' Advice on Public Liability Insurance

If you run a business you must be familiar with public liability insurance and why it is essential you have it. Having such cover is not legally required but it is important not just for the smooth running of your business but also for building trust in your customers and saving money from claims against your business. Running your own company may be stressful and you have to be careful who might be affected from your activities as a business and how you'll react in case you cause damage to a property or a person. Public liability insurance covers your costs if someone sues your business and without it, the massive legal costs caneasily bankrupt your business.

What is covered?

- Any damage caused to members of the publicby a business operation or by the employee carrying out work on the company's behalf.

- Any damage caused to a third party's propertyby your business or by the employees acting on your behalf.

- A member of the public falling illdue to the company's activities -for example food poisoning in your restaurant.

Please note: Public liability insurance doesn’t cover injuriesyou or your employees suffered. It also doesn’t protect you if one of your employees tries to sue you – for that you will needemployers’ liability insurance, which is legallyrequired.


Who needs it?

- Any shopsand restaurant – these are places where a lot of customers go on a daily basis, so they must be covered while on your premises.

- Contractors, builders, handymen, plumbers, etc. (anyone working on customer locations)

- Live performers - venues will often require you to be insured before theylet you use their premises.


Limit on your public liability insurance

The limit mainly depends on the type of business activities you are carrying out. The minimum is £1m and is appropriate for self-employed people, small or family businesses. For medium to large businesses the limit increases to £2m and even £10m depending on the activity.You should try andfind out what the standards are for the industry that your business operates in.


Why obtain public liability insurance?

If you own a business that involves day to day contact with customers or members of the public, such insurance is highly recommended. As mentioned earlier, it is not legally required but we recommend getting a public liability cover just in case something happens. That way you won’t face a huge bill of legal and compensation costs.


How and where to shop for public liability

You can usually browse and compare quotes for public liability online.

You can start by visiting ConstructaQuote.com. They compare prices from top insurers such as Aviva, Zurich, MMA Insurance, Ageas and many more. Once you choose your provider and pay, you will be instantly covered.

Insuremyliability is a similar comparison site. It is good to visit at least two (if not three) sites of this kind in order to get the best deal available as sometimes insurance companies provide different offers to different sites.

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