How do you know if Public Liability Insurance is necessary for your business?

Public Liability Insurance seems like an obvious requirement for public facing businesses. However, you don’t necessarily have to be inviting customers into a store, for example, to end up facing the kind of claim that Public Liability Insurance is designed to handle. In fact, for any UK business the potential of this kind of insurance should be carefully thought through to establish whether it could be necessary and/or beneficial for your business.

Is Public Liability Insurance a legal requirement?

Certain companies require Employer’s Liability Insurance but that is the only type of business cover that could be considered a legal requirement. However, while there’s no legal need to purchase Public Liability Insurance there is a very convincing business case for it.

Why is Public Liability Insurance necessary for your business?

1. It will protect you against any claims from the public

This covers both an accidental injury that someone suffers, as well as any damage that is caused to their property. Policies differ but will provide various levels of cover for expenses such as legal costs and any compensation that you’re required to pay out as a result of a successful claim. If someone who has suffered an injury also claims against you for medical costs, NHS transport and lost earnings this could also be covered.

2. You may be more exposed than you think

If you have a shop or premises regularly visited by the public then there is a clear need for Public Liability Insurance. However, the potential for issues to arise goes much wider than that. For example, Public Liability Insurance will cover you if you are working in a client’s home and you cause damage. If your business involves staff going into other businesses to work then you will be covered for any injury caused to anyone else by your staff while doing that. If your business has land – for example, a farm – then you may need Public Liability Insurance because, even if a member of the public doesn’t have permission to be on your land, you could still be liable for an injury or damage that they suffer.

3. Industry best practice or contracts may require it

Particularly in those sectors where there are more high risk activities or equipment that presents potential risk, Public Liability Insurance is often defined as part of best practice and included as a contract term. For example, if you’re working on a government or local authority contract then you may find that there is a requirement in the contract to ensure that you have a certain level of Public Liability Insurance in place. Some contracts may stipulate a specific level of cover so make sure you read the small print before making any decisions about which policy to buy.

Public Liability Insurance has a much wider use than many business owners realise and can be key if you’re carrying out certain activities or contracts. If you’d like more information on whether Public Liability Insurance is relevant to your business please get in touch with the Morgan Richardson team today.