Public liability insurance is important for your business because it will pay out in the event that a mistake is made which causes an injury to a member of the public or customer, or which damages their property.
Incidents where customers slip or trip over are among the most common accidents which can result in public liability insurance claims. For example, if a spill isn’t marked sufficiently with a warning sign on a shop floor and a customer slips and is injured, they may claim for compensation. Public liability insurance covers this cost for a business.
An example of a claim
A plumber was working on a domestic property within a block of flats but failed to fit caps properly whilst undertaking the repairs. This caused water damage in the property and the property below.
What did the insurance company pay for?
Damage caused was covered under the Public Liability section costing a total of £15,000.
What did the insurance company not cover?
£250 excess and any element of profit on the remedial works
What level of public liability cover do you need?
The minimum level of cover a business can take is £1 million, however depending on the nature of your business you may need more cover. For companies that work on government contracts there is likely to be a requirement for £5 million or £10 million of public liability.
Details to look out for on your policy
- Is your business covered for the right things? For example, if you work at heights above 10m, is this covered?
- Which exclusions are on the policy? Cheaper quotes may exclude circumstances that are important for your business.
- Have you chosen the right level of cover for your business and a level that is acceptable for your clients?
