Public Liability insurance (PL insurance) covers you for the cost of a public liability claim from a third party, such as a member of the public (not an employee), that has suffered injury (or death) or property damage caused by you or your employees in the course of your business activities.
In our increasingly litigious society, public liability insurance has become a vital insurance protection for freelancers, small businesses, and larger organisations (including charities) who have contact with clients and the general public.
It can cover legal costs for defending claims and pay compensation awarded to a claimant if your business is found to be at fault, providing you with peace of mind that your business will be covered.
What events can lead to PL insurance claims?
There are many events that can give rise to a public liability insurance claim. The most common is when a visitor trips or slips on your premises and claims the accident was due to your negligence.
If they can prove their case, and their injury has caused them loss of earnings through enforced time away from work or worse caused them a permanent disability, then the claim could potentially amount to tens of thousands of pounds.
PL claims can also arise if you damage a third party’s equipment when visiting their premises . This could be from the item being dropped or liquid being spilled on an electronic device causing it to malfunction.
These examples can appear trivial, but even a trip on your premises can lead to a claim for a soft tissue injury, which could cost you thousands of pounds plus legal fees, unless you have PL Insurance.
What does Public Liability insurance cover?
- Legal expenses – Should a claim be made against you the policy will provide cover to help with the cost of legal proceedings.
- Cost of repairs – The cost of repairing damage to the claimant’s property, such as accidentally knocking over and breaking a valuable ornament in their offices during a meeting, or a plumber causing a leak/flood to a customer’s premises and damaging carpets as a result.
- Medical fees – The cost of hospital treatment, including ambulance call-out, if a claim is made against you for these.
- Compensation claims – Injury to third parties or damage to their property if an accident occurs on your business premises, a client’s premises or elsewhere.
How much does Public Liability insurance cost?
The common perception about business insurance is that it is expensive. Yet, PL insurance is one of the least expensive polies you can buy, but certainly one of the most valuable insurance investments a business owner can make.
At Caunce O’Hara, we offer public liability insurance, from as little as £112.00 for £1 million of PL cover which also includes £250,000 of Directors & Officers Liability cover and £1,000 of portable equipment insurance, as part of our Business Combined insurance policy. PL cover can be extended up to £5 million of coverage.
How can I protect my business against a Public Liability claim?
The first answer is to ensure you have public liability insurance, to mitigate the risk. However, as with all potential issues, prevention is far better than cure… and usually costs less.
No matter what size your business is, it is a good idea to have a risk management plan in place. Many risks a business faces are not immediately visible to the untrained eye.
A risk management plan will help identify potential risks and provide opportunities for those risks to be reduced, or even eradicated, to prevent accidents and potential insurance claims.
For a personalised public liability insurance quote please call 0333 321 1403 or click to build your own quote online in minutes!