PUBLIC LIABILITY COVER EXPLAINED
Have you heard of Public Liability (PL) insurance? It’s an insurance cover that gets talked about a lot, but are you sure what it is or why you might need it? Not sure? Then hopefully our guide to PL will help to clear things up.
What Does Public Liability Insurance Cover?
Public Liability Insurance covers damage or injury to a third party (or their property) for which you can be held legally liable, whether this is a customer, supplier or just a passer-by. It can also cover injury or damage incurred to/on property belonging to a third party.
For example, if a visitor to your business premises trips over boxes left on the floor, injuring themselves, they may be able to claim against you. Public Liability insurance provides you with cover for this.
Do I Need Public Liability Insurance?
Although it’s not a legal requirement to start trading in the UK, we highly recommend that you take PL as soon as you can. Not only will some premises require that you have this insurance before you operate within their walls, but many clients will insist on knowing you have this cover before they decide to use your services.
But all of this aside, the risk of a workplace accident, damaging property or worse injuring a person, should be enough motivation to make sure you are protected.
It is common for self-employed people to have this insurance because of the protection it offers. If you’re working for yourself then you should pay serious attention to PL, if only to avoid crippling costs in the event of something untoward happening. Many clients will require that you have PL cover in order to work with them.
How Much Cover Do I Need?
This depends a lot on what you do, how you do it and how much potential damage you could cause! Most people will start with a policy that covers them for up to a £2 million limit of indemnity but others may need more, check with your broker to see what policy will fit your business best.
Additionally, be sure to check your contracts as some of your clients may very well have minimum requirements.
How Are Public Liability Premiums Calculated?
Some simple policies will have premiums based on how many people you employ. As your business grows this may change to being based on your turnover. It is very important to let your insurer know exactly what you do, as some policies will have restrictions, such as height limits and limitations as to types of property you can work on or in.
How Can I Get Public Liability Insurance?
Getting started with Public Liability is easy with FSB Insurance Service, and we recommend that you take this cover at the earliest opportunity.