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If you run a business where members of the public or customers come to your premises or you go to theirs, you should think about taking out public liability (PL) insurance.
Public liability insurance covers you if any awards of damages are given to a member of the public because of an injury or damage to their property caused by you or your business.
Incidents where customers slip or trip are among the most common accidents that can result in public liability claims. To give a practical example, if a liquid substance is spilled and not cleaned up properly and a warning sign is not displayed, a customer or member of the public could easily slip and fall over as a result.
If this person was to sustain injuries as a result of the fall, they may claim for compensation and this is where public liability insurance would be useful as it would cover any related costs.
If a customer or member of the public were to experience injury or loss caused by you, or your business, then various costs and fees may well arise. Any related legal fees or expenses can be claimed for on your public liability insurance as well as costs of hospital treatment, including ambulance costs, which the NHS may claim from you.
Even the most careful business owners and employees can make mistakes and there is no way of completely preventing an accident from happening. Public liability insurance helps you to rest safe in the knowledge that if an accident were to occur, your customers property could be repaired or replaced and their medical bills paid for.
It is possible to secure public liability cover that is tailored to suit the specific risks and requirements of your business and taking out a flexible business insurance policy that includes public liability ensures that your business will not suffer financially if an accident were to occur.
Different businesses require different types of public liability insurance therefore it is sensible to talk over your options with an informed professional who can help you to make the right decision when it comes to organising the insurance policy.
Premiums are based on the type of business and rated on an estimate for the level of activity of the business. For many businesses this will relate to annual turnover although other factors may be used instead. For example, premiums for a hotel might be calculated on the number of beds provided to reflect the number of guests at any one time.
Other types of business insurance that you may also want to investigate are Employers Liability Insurance and Professional Indemnity Insurance.
Employers Liability Insurance is essential if you employ staff whereas Professional Indemnity Insurance is used if you hire a professional, for example a designer or project manager, to work for you. Professional Indemnity Insurance should be held by the professional you are hiring and you may want to check before doing business with them.
About the Author
Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.