Public liability insurance is an important type of business protection for many companies operating in the UK. But what is this form of cover, what does it protect, does your business need it, and what level of cover should you consider?
This blog post aims to help explain important things to know about public liability cover.
This form of protection covers your company if members of the public or your clients suffer an injury, or their property become damaged, because of your business. In the event of your business causing such an incident, the insurance covers:
Public liability cover is important business insurance to have if your company is public facing. But it should also be considered for a company that might, at any time, come into contact with members of the public. This includes:
While it isn’t compulsory, it’s important to mention that some clients might require public liability cover as part of conditions set out in a contract. Some membership bodies and regulators might also request their business members have it.
It’s worth mentioning that there’s only one type of cover that’s legally required in business, which is employers’ liability insurance. You can also learn about this and other types of key cover in our blog post, What sort of business insurance do I need?
There are many situations when a company might need to protect itself with this insurance. Some examples include a:
When thinking about the level of cover that’s right for your company, it’s important to make sure that it protects both your business financially, and the interests of the public or your clients.
The level of cover you need can depend on the daily level of risk your business undertakes. For instance, a construction worker doing dangerous jobs that, if they went wrong, could cause serious injuries to people walking by each day, would pose a high level of risk.
Also, depending on the business sector you work in, or if your company is part of a membership body, there might be a minimum level of cover you have to take. Some clients might also request that you have a specific level of cover when doing business with them. Companies working on government contracts, for example, are usually required to have a minimum level of cover of between £5million and £10million.
Public liability insurance is just one of many key types of cover that should be considered in business, especially if you’re a company that regularly comes into contact with the public.
When it comes to any type of business insurance, there’s a lot to think about to make sure it’s the right choice for your company, from types of policy to levels of protection. We aim to help with this by providing FSB members with a series of insurance services. This includes giving you access to:
To find out more about this service and how it can benefit you, please take a look at our FSB Insurance Service page.
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