You might need this insurance if your business often comes face to face with members of the public – which includes your clients and contractors. Find out how you could be liable and what you can do to protect your business.
Public liability insurance can protect your business from claims made against it by members of the public. People could make a compensation claim against you if they are injured or their property is damaged as a result of something that happens on your business premises or at an event you’ve organised.
Anyone working for you could trigger a public liability claim against your business if they do something at work which injures – or even kills – a member of the public.
Public liability insurance can protect you against claims made by clients and contractors as well as members of the public. It doesn’t protect you against claims made by employees – for this, you would need employers’ liability insurance.
Public liability insurance can cover your business against not just compensation payments but also legal fees and medical expenses.
If there’s a spill on your shop-floor that isn’t marked with a warning sign and a client were to slip and break their wrist, they could make a claim against you. Or they could trip over a loose cable in your office and injure themselves. Or you might visit a client and accidentally knock your coffee over their smartphone.
The full cost of an accident might be between £8 and £36 for every £1 you spend on your insurance claim*.
*Source: Health & Safety Executive
Working from home might lower the level of cover you need
Having only a few clients visiting you would also lower your cover
The minimum level of cover is £1 million
Working on government contracts might take your cover up to £5 million
Whilst care has been taken in the production of this article and the information contained within it has been obtained from sources that Aon UK Limited believes to be reliable, Aon UK Limited does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way whatsoever by any person who may rely on it. In any case any recipient shall be entirely responsible for the use to which it puts this article.
This article has been compiled using information available to us up to 01.07.15.