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Do I need public liability insurance?

Sep 20, 2019 | Insurance

do i need public liability insurance?

Public Liability Insurance, unlike an employer’s liability insurance, isn’t a legal requirement. However, a necessity for business owners. If your business comes in contact with a lot of public, whether these are the men working for you or the clients using your services, public liability insurance is a safe passage if an unfortunate incident happens. For instance, if you run an interior design firm. Your employers and work staff are at the house of a client. While moving, loading or unloading the furniture, if your client hurts himself due to your work or claims damage to his property then public liability insurance would provide you with the cover.

In short, any business that comes in contact with customers and passers-by has a high degree of risk. That includes all the Restaurants, Cafés, Retail shops, Clothing outlets, Shopping malls, Construction Companies, Craftsman services, Tradesmen, and the list continues.

Importance of Public Liability Insurance:

High-Risk Business:

All the services-based businesses are always at high-risk exposure. Whether you are a mechanic, construction worker, electrician, driver, carpenter, designer, plumber, or operate a business that has a lot of contact with the public, public liability insurance is a must-have.

If a customer suffers injuries or claims property damage related to your business, then you are liable to cover the damage. Without Public Liability insurance, it isn’t possible. As you might have to face lawsuits, cover for damages and also pay heavy fines. Not only it can cause serious damage to a growing business but can make you go bankrupt. Therefore, public liability insurance is very essential in order to operate a risk-free business and ensure a stress-free work environment.

Proof of Cover:

Clients have the right to ask for proof of public liability insurance before hiring or using your services. Having a quality cover not only saves you from the embarrassment but also acts as a tool to grow your business. As your customers would consider it safe to have business with you.

In addition to that, the importance of public liability insurance is that there are some government and private matters that can demand the proof of coverage. For example, if you are hosting a public event at a public place then you need a permit. The permit requires you to also submit your proof of public liability insurance. Moreover, banks can also require proof when applying for a business loan or when leasing your property.

What Public Liability Insurance cover?

Public liability insurance can provide a secure work passage for a business to operate in public. If any unfortunate incident takes place, not only it will provide the cover for all the expenses but will also offer appropriate help in lawsuits.

1.    Property Damages:

Public Liability Insurance offers protection to other business or public from any damage related to your work. Damage that can occur to their property from your work or the damage that incurred to them while they were on your property. Meaning that the insurance company will bear all the renovation, repairing and construction costs.

2.    Bodily Injuries:

Injuries that your client inflicts while on your property and within the premises of your business, remain covered through the insurance. It means that the insurance company will pay for all of their material costs and health expenses.

3.    Legal Expenses:

If a customer sues you, then there is the need for an attorney that can represent your business. The cost of hiring a lawyer and all the other legal expenses are covered through your public liability insurance.

The extent of Public liability cover:

The extent of public liability insurance depends on your business. Whether it’s of national or international level. Either you operate your business from home or have proper business premises. The number of people using your services. Frequency of your contact with the public and places for work. All of it matters. The premiums also depend on such factors. From a range of cheaper to expensive ones, you can have a diversity of public liability insurances

In order to get the best package, you first need to specify your requirements. Then choosing a policy that perfectly matches your demands will help you operate your business successfully. Ultimately providing market growth.


More to Explore:

How much is the cost of public liability insurance for a small business?

Most of the small business, on average, pay £65 per month for public liability insurance. According to a survey, 32% of the small businesses pay less than £40 for public liability cover every month. While 50% of the small business pay up to £80 every month.

Is public liability insurance a legal requirement?

Public liability insurance isn’t a compulsion by law at all. However, for business to operate, it’s one of the best policies that not only ensure customer satisfaction but also reputed market value. Having public liability insurance in your business policy allows you a stress-free operation in the market. Free from the worries of any public damages due to your work.

Why do I need public liability insurance?

Public Liability insurance provides business owners with a cover for the damages caused to people by their work. If anyone suffers some health injury or a property inflicts some damage, public liability insurance will cover all the expenses.

How much public liability insurance cost is for a sole trader?

The insurance costs completely depend on the work methodologies of a trader. How large their business is? What sort of people interact with them and how frequently? Things like that determine the actual cost you have to pay for insurance. For example, a carpenter working only on residential projects can have insurance starting from annual £400 minimum.

Do I necessarily need public liability insurance for my home business?

If your home-based business is successful enough that it interacts with a variety of public on a daily basis, you should definitely consider having public liability insurance. As it will cover you for any unexpected event or claim by your customers related to your business.

Do you have to display public liability insurance certificate?

Displaying of the public liability insurance certificate is not required by law, however, recommend. As it can prove to be an effective tool to reassure your customers.

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