If members of the public, customers or clients visit your business premises, you should consider taking out a public liability insurance policy. Even if you run a home-based business, and your customers visit you sometimes, you might consider taking out a policy.
What does public liability insurance cover?
This type of insurance will cover the cost of claims if a member of the public is injured by you, your employees, or accidentally whilst visiting your business. It will also cover you if you damage property belonging to someone else, while carrying out business activities.
Essentially, as well as covering the cost of the damage itself, a typical policy will also cover any legal representation fees and expenses which are incurred in defending your claim.
You should remember that public liability insurance only covers third party claims, and not those made by your own employees. You should read our guide to employers liability insurance for more information.
During your period of cover, you should always let your insurance provider know if any of your business circumstances change.
Public liability insurance claims
Here are some examples of when you will typically be able to claim on your policy:
1. You are a sole trader IT support engineer. While visiting a customer site, you knock a cup of tea down the back of a server, knocking out the client’s network and damaging the hardware beyond repair.
2. You own a carpet showroom. One of your customers comes in to order some stock, but trips over a loose piece of carpet you have on display. Your policy will cover the customer’s claim for injuries sustained.
3. You are an electrician. You re-wire a flat as part of a refurbishment, but connect the fuse box incorrectly. As a result, one of the circuits burns out, and the owner makes a claim against you for the damage caused.
Amount of cover required
The amount of cover you need will vary according to your business type and other factors. Many small businesses will take out a minimum of £1 million of cover, although in some circumstances you may be required to take out £5 million or £10 million of cover, for example, if it’s specified in contracts between you and certain customers.
Cover is not particularly expensive, and you may make significant savings by buying a general insurance policy for your business, which typically includes office insurance and employers liability, as well as public liability cover.
Get a quote
Visit Hiscox for Liability, Office and PI Insurance.
This information is provided as an overview, it has no legal status. Please check all policy details carefully before taking out insurance for your business.
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