Every business needs to be covered with public liability insurance because, let’s face it, accidents are going to happen. The costs of not being covered can be prohibitive, and, for smaller businesses, could even threaten their future.
Tradesman Insurance 4u allows you to select the package that best fits your needs. Companies can buy public liability insurance as part of their overall business insurance policy or separately, it is just a matter of individual preference.
Unless a company or job requires you to have public liability insurance, It’s up to you to decide whether you need it (it’s not a legal requirement), but it's common to find that businesses that interact with the general public usually have it.
Having public liability insurance is not usually a legal requirement, but if a company interacts with the general public it is always a good idea. While many packages are designed for small businesses they can also be applied to larger corporations.
Public liability insurance is designed to protect a company if a member of the public is injured while dealing with your firm, or if a third party’s property is damaged by your activities. It can cover legal expenses as well as compensation claims.
These insurance products are designed to cover a firm for compensation and legal fees relating to injury to a member of the public relating to your business activities, or damage to their property.
For example, if a plumber is working on the central heating system of a household and does the job incorrectly, it could lead to severe water damage. The householder could make a claim for repairs needed after a flood caused by your company, and the public liability insurance package could cover this.
Public liability insurance is designed to:
Any company that regularly comes into contact with members of the public would be strongly advised to take out public liability insurance cover. If your business is sued for a client’s injury or damage to property the legal and compensation bill could be huge. Insurance may well be able to cover this. Firms should bear in mind that they could be liable whether the incident happens on their premises or at a site at which they are operating.
There is no legal requirement in Britain for a company to take out public liability insurance, but it is required under some client contracts, as some companies refuse to do business unless there is cover in place. Some professional bodies demand a minimum level of business insurance and regulators in some industries insist on it.
We recently came across the case of a new housing development in the Midlands in which the staircases had been incorrectly fitted in each of the five houses. This meant that the new owners had to replace the staircases at some expense. They claimed around £15,000 for the remedial building work and for the inconvenience. This was covered by the builder’s public liability insurance policy, except for the £250 excess, which is the part of the claim that the policyholder has to pay.
Public liability insurance is designed to protect a company if a member of the public is injured while dealing with your firm, or if a third party’s property is damaged by your activities. It can cover legal expenses as well as compensation claims.
The level of public insurance liability needed varies widely from company to company, so it is important to check the policy for every new job or contact. Companies working for the government are generally required to be covered for up to £10m. At Tradesman Insurance 4u we offer a minimum of £1m in public liability cover.
From public liability insurance to employer's liability, professional indemnity to additional tool cover, we offer a wide range of insurance options to protect you and your business, find out more by heading to our insurance cover types section. If you still have more questions, head to our business insurance FAQs section or give us a call and one of our advisors will be happy to help.
The risk of not being covered is not worth it, because the costs of a claim against a company that doesn’t have public liability insurance could be potentially bankrupting, whereas the cost of the insurance is not usually too great. No matter how professionally a business operates there is always the possibility of an accident or unforeseen circumstance that could lead to a claim. A company that is covered can work confidently in the knowledge that legal fees, compensation or medical costs arising from a claim will be met.
Public liability insurance is also a must for doing some types of business, as some clients will refuse to sign a contract without seeing your insurance policy details. This can be an effective marketing tool, and at Tradesman Insurance 4u we offer a proof of policy badge that firms can put on their website, which they can link to their public liability insurance certificate.