Public Liability Insurance Explained
Public liability insurance is strongly advised for any business or employer that deals with customers or members of the public on the business premises. This insurance policy covers your business against legal and compensation costs in the event of a member of the public being injured or having their property damaged while on the premises. This form of liability insurance does not cover staff insurance, which should be arranged separately under an employers’ liability policy. The insurance will cover any costs or damages awarded to a person injured, and for damaged property claims, plus further related costs. These may include legal expenses, costs and fees, and the costs of any hospital treatment or ambulance services that the National Health Service may claim back from you.
Although public liability insurance is not compulsory legal cover (except in the case of extreme sports or horse riding businesses), it is advisable to take out such a policy, not only to protect your customers but also so that suppliers and customers have confidence in your business.
The types of business that should take out this cover include sporting and entertainment companies that put on live events, or that deal with members of the public in some way. Self-employed people may need to look into this kind of cover, for example, if they have members of the public coming to their home or business premises. Even if your business has an exemplary safety record and adheres strongly to good H&S practices, it would still be advisable to take out a public liability insurance possibility to protect against the event and costs of a freak accident.