Guide to public liability insurance

July 31, 2018

Public liability insurance is one of the most important forms of business cover, but how does it apply to your business?

We’re here to answer that question, and many more, with our comprehensive guide to public liability insurance. So sit back, grab a cup of tea and get ready to learn some helpful tips and tricks that should leave you with a clearer sense of what public liability is all about.

What is public liability insurance?

It’s designed with third parties in mind. That means that cover is available for most people that interact with your business including customers, clients and members of the public.

If a third party suffers an injury due to your work, public liability insurance is there to protect you from hefty compensation costs. It also covers third party property damage too, so you can insure for issues such as damaging a customer’s furniture.

In most cases, insurers will also pay the legal costs associated with defending a claim, taking the pressure off you if a claim goes to court.

Without this insurance in place, your business could be left out of pocket in the event of a claim, so it’s worth thinking about how public liability insurance could help you.

What does public liability insurance cover?

A customer taking legal action against your business is a scary thought but if a third party suffers damage to their belongings, develops an illness or disease or suffers an injury connected to your business; this may be a reality you have to deal with.

Is anything excluded from public liability cover?

Cover will contain unique exclusions depending on what you do. These can vary according to a number of factors so make sure you give your quote documents a thorough read so you don’t get caught out.

Although exclusions vary, it’s safe to say that your policy will not cover the following as standard:

Damage to your own property
Defective workmanship
Deliberate acts of damage or injury

It’s also important to remember that public liability insurance doesn’t cover your employees. If you employee anyone in your business, including part-time, temporary or placement staff, you’ll need to cover them with employer’s liability insurance.