If you run a customer-facing business or meet customers face-to-face in their business premises, then you may want to consider taking out a public liability insurance policy. But before we delve into the things that such insurance can cover, it’s important to ask the question: what is public liability insurance? Simply put, the insurance covers you should someone be injured by your business, or you damage third-party property when working on a job. Below, we’ve rounded up five things that you can claim on public liability insurance.
-
Medical bills
Should a member of the public become ill or injured by your business or employees, either on your premises or in public, they may require medical attention. Having public liability insurance protects your business and covers medical bills for customers and members of the public. However, it’s important to remember that such policy will not cover your employees should they fall ill or are injured. To cover their medical bills, you’ll need employers’ liability insurance, which is a legal requirement for business owners with employees in the UK.
-
Compensation
If a member of the public was to fall ill or become injured as a result of your business, they might consider filing a complaint or suing your business. Such cases can result in hefty pay-outs, which is why public liability insurance is so important in these cases. Should a member of the public sue your business, your provider will cover the cost of compensation, but you should check the amount before signing up for a policy.
-
Repairs
For businesses that offer services to their customers (such as joiners and builders), there’s a chance that you could cause damage to your customers’ property. Public liability insurance will cover the cost of these repairs, such as if a customer requires a new sofa if you spill paint on it. Pay-outs for repairs will vary and are awarded on a case by case basis, so you should make sure to document all evidence before filing a repair claim. Remember that, even if your insurance company doesn’t pay out, you still may be required to offer some form of compensation to your customer, so clarify exactly what is covered by your insurer.
-
Legal fees
Should a claim be made against your business, a public liability insurance policy will be cover the cost of any legal proceedings, such as if your business was taken to court as a result of an accident. It’s important to note that your company must be able to prove that any damage to a member of the public or their property was an accident, so you should always follow best practices when working on a job and do everything that you can to reduce risk.
-
Loss of income
If a member of the public suffers from a serious injury as a result of an accident because of your business, then they could be off work for a substantial period of recovery. Of course, most people will be offered statutory sick pay from their employer, but this is often much less than their actual salary. Because of this, many choose to file for personal injury compensation claims, where businesses, more often than not, have to pay out. By investing in a public liability insurance policy, you’ll be covered should a customer or member of the public argue that your mistakes caused them to lose out on earnings.
Investing in public liability insurance
Although public liability insurance is not a legal requirement in the United Kingdom, the five points we have raised above clearly demonstrate its benefits. Unless you have hundreds of thousands of pounds in business reserves, it’s unlikely you’ll be able to pay out a personal injury claim should your business cause an accident or damage to a member of the public or their property. Therefore, it makes sense to invest in protection as soon as possible.
