When you are responsible for a business or organisation, there are many different types of insurance you need.

One of these is public liability insurance.

Here’s how public liability insurance can keep you protected, what it applies to, and what you need to do if you have to make a claim.

What is public liability insurance?

Public liability insurance covers the cost of personal claims if a member of the public claims against you.

It covers you whether you’re at the office or off-site.

Why might a member of the public make a claim against my business?

Members of the public may claim against your business if they have either been injured or if you have damaged their property.

For example, let’s say a customer visits your building and trips over a vacuum cleaner that hasn’t been put away properly, breaking their leg. They’d be entitled to make a personal injury claim to cover the time they had to take off work.

Alternatively, let’s say one of your employees is working at a customer’s home and damages their television. Public liability insurance means you will be able to replace your customer’s TV.

What is ‘occupiers’ liability’?

You might have heard this term used in regards to public liability. It means a person or company that occupies or is responsible for a property has a duty of care to protect the people who visit.

As well as buildings, occupiers’ liability can apply to public places like car parks, streets, walkways, and parks. In this scenario, whoever is responsible for the public place would be liable.

Does public liability insurance cover employees who get hurt?

No. You need employer’s liability insurance to protect employees from illness and injury.

Bear in mind that it’s a legal requirement for the majority of businesses to have employer’s liability insurance.

Is public liability insurance a legal requirement?

Public liability insurance isn’t a legal requirement for most businesses, although there are a few exceptions.

However, it can provide peace of mind and protect you against accidents. Otherwise, you would need to foot the bill yourself.

If you apply for a tender or register to work with an organisation like a local council or government organisation, you may need to provide proof of insurance.

How much does public liability insurance cost?

It depends on the nature of your business, the amount of coverage you need, and whether you have claimed before. As a rule of thumb, the more contact you have with the general public, the more coverage you will need to buy.

Like other types of insurance, you can elect to pay an excess which will lower the cost of your insurance.

Do I need public liability insurance if I run a small business?

As public liability insurance isn’t a legal requirement, it’s up to you.

However, if your small business has a lot of contact with the public, for example, you run a plumbing business, hairdresser, or coffee shop, it’s a worthwhile investment.

How do I make a claim?

Let’s say one of your suppliers has come to your office to give a presentation. All is going well when suddenly, you accidentally knock their laptop on the floor, smashing it to bits!

What happens next?

You need to get in touch with your insurers to make a claim as soon as you can. Your insurer will let you know if you are covered and what the next steps will be. The example above is a simple one as it’s a case of claiming the cost of the broken laptop. However, other claims may be more complex.

It might be that you’re only made aware of the need to claim on your insurance when you receive a solicitor’s letter advising that someone is making a personal injury claim. The same principle applies. Get the evidence, understand what happened during the incident, and reach out to your insurer as soon as possible to check that you’re covered.

Remember, if you need help making a claim for any reason, our team of experts is always here to help. We’ve recovered over £2.5 million in compensation for our clients, and we’d love to see how we can do the same for you.