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Public Liability Insurance

Public Liability Insurance

If as a result of your business activities a member of the public or client is injured or incurs damage to their property, you are likely to face legal proceedings. Public Liability Insurance can be cover any compensation and legal fees that might ensue.

WHAT’S COVERED BY PUBLIC LIABILITY INSURANCE?

Public Liability Insurance covers your legal liability to pay damages to members of the public for death, bodily injury or damage to their property, which occurs as a result of business activities. Public liability insurance cover can also be extended to include claims arising out of defective products or design, often referred to as product liability insurance.

WHO NEEDS PUBLIC LIABILITY INSURANCE?

If you visit clients' sites or have customers/members of the public visit your business premises you will need Public Liability Insurance. While Public Liability Insurance is not a legal requirement it is sound business practice.

The majority of local authorities and businesses will expect your business to be insured up to a minimum of £2m for works to be undertaken at their premises or on their behalf. Without suitable Public Liability Insurance you won’t even be able to compete for the business.

RISKS OF FAILING TO ARRANGE PUBLIC LIABILITY INSURANCE

Public liability insurance claims have become more and more frequent over the last few years. The emergence of “no win, no fee” claims companies, has led to huge increases in litigation's against unsuspecting businesses.

Claims against public liability insurance, can easily mount up to hundreds of thousands of pounds; businesses with no insurance will be liable to pay whatever amount is awarded against them.

If your company has insufficient funds, you could be pursued personally. A court can pursue you for any assets which you have i.e. your home, cars and any other assets which you may own.

Public Liability Insurance gives you the protection you need when the unforeseen occurs, as there are risks attached to running any business, don’t caught out by not having the adequate insurance cover for your business. You could lose everything that you’ve worked so hard for.

PUBLIC LIABILITY INSURANCE CLAIMS EXAMPLES

The following examples highlight the importance of Public Liability Insurance.

CUSTOMER SLIPS ON OIL AND SUES GARAGE
A client enters a garage and slips on some spilt oil, breaking their leg. As the mechanic has not cleaned the oil up or put a sign out warning clients to be cautious, the client pursued the mechanic for compensation and was awarded substantial damages.

ELECTRICAL CONTRACTOR SUED BY HOME OWNER
Whilst rewiring a house an electrical contractor failed to ensure that their work was completed properly. Following a subsequent fire, the courts found the electrical contractor liable and awarded damages to the property owner.