Public Liability Insurance – Everything You Need to Know

A business owner has more to do than there are hours available each day. With the many stresses you face every day, can you breathe easy knowing an inevitable accident in the future is not going to paralyze your business operations?

Knowing what type of business insurance you’ll need is an important part of your insurance model, and hopefully, as your business grows, so will your need for protection.

What is Public Liability insurance?

Public Liability insurance is formulated to protect your business if a customer or member of the public is injured, or sustains property damage as a result of negligent business activities.

As one of the most important types of business insurance, it’s used in a vast amount of professions and trades. Public Liability claims are typically made by customers of your business.

Insurance policies are based on the individual’s occupation and other operational facts. This is usually calculated and compared through online quotes. A Public Liability policy can also extend to cover Product Liability and Defective Workmanship as well as legal defense cost.

Does my business need public liability insurance?

If your business has any interactions with the public, customers, or suppliers, Public Liability Insurance will cover the risks that your business may one day face.

As a business owner, you have a legal responsibility to ensure the safety of your customers and manage any mistakes and accidents.

Should the day come when you are faced with a public liability claim made by a disgruntled customer, the financial impact of paying the claim and associated legal fees could burn through your company and personal finances, without the aid of insurance.

For example: if you sell, supply or deliver goods, even in the form of repair or service, you may need cover for negligence claims against your business – where your products or workmanship has caused injury, death, or damage.

We’ve given you a few pointers to consider when deciding if your business needs Public Liability insurance:

  • Can your business afford the legal expenses and costs involved with a claim, or would you have to use personal finances and incur debt without insurance?
  • Do you need Public Liability insurance for business or job contracts?
  • Does your rental agreement require you to have Public Liability insurance?

How much Public Liability cover do I require?

One of the first things to think about when calculating how much cover your business may need is to think about the risks you are exposed to, and any industry or contractual requirements involved in your business.

Take the time to think about the appropriate amount of financial protection you would need if a Public Liability claim is made against you.

There are a few questions to consider when trying to calculate how much public liability cover to get:

  • Which possible accidents could happen in my business environment?
  • What are the possible consequences of those events to the injured parties (e.g. medical expenses, loss of income, loss of earning potential, damage to property, etc.)?
  • What is the worst incident that could happen and how much would my business be liable for?

Your insurance policy will have a specific list of insured events and exclusions. It is best to check with your insurer about the policy wording to confirm the details of your Public Liability insurance policy.

What is usually included in Public Liability insurance?

We’ve listed below what is commonly included in Public Liability insurance policies, and the events you are protected against:

  • Injury to any person
  • Obstruction, loss of amenities, trespass, nuisance, or interference with any right of way, light, air, or water
  • All sums that the insured is legally liable to pay, due to any claim that is first made against the insured during the insurance period, in respect of bodily injury, death or loss of, or damage to property
  • Damage to third-party property as a result of the spread of fire from the insured property
  • Movement of motor vehicles – Liability arising in connection with moving a motor vehicle for the continuation of the business
  • Security firms
  • Cross liability

What is usually not included in Public Liability insurance?

We’ve listed below what is commonly excluded in Public Liability insurance policies, and the events you are not protected from:

  • Professional services
  • Efficacy
  • Recall
  • Advertising
  • Retroactive date (if you didn’t previously have public liability cover)
  • Deliberate acts
  • Defective design

Optional Public Liability insurance cover

There is additional coverage available that offers business owners further protection against defective workmanship and products, wrongful arrest and defamation, retroactive cover, and more.

For further information on the cover provided, visit our Public Liability page and get comparative quotes instantly to find the best cover for you.

What are the potential risks my business faces without Public Liability insurance?

As a business owner, it is your job to worry – but you don’t need added stress to your daily life, such as looming threats and potential risks that could turn into a lawsuit.

Protecting yourself from these hazards is part of an effective management system, and anticipating future issues is how you create a potent insurance model.

Here are some scenarios that could expose your business to liability and threats:

  • Accidental injury to third parties and damage to property as a result of negligent business activities
  • Financial loss as a result of your negligence
  • Incorrect equipment installation causing property damage

Whether your business is in the Hospitality and Accommodation industry, where you work closely with the public every day, or in the Construction and Trade industry, where there is constant danger – Public Liability insurance is something you may urgently need to consider adding to your policy.

One injury or accident has cost many entrepreneurs their entire livelihood, and the online method of business insurance has made the process far less burdensome for the busy business owner.

We help you through these stressful steps by answering the important questions and providing the information necessary to correctly protect your business.

Bi-me business insurance covers small businesses and start-ups the way most insurance companies don’t. For us, no policy is too small. With our simplified online process, you can immediately compare and buy the insurance that will fit your business like a glove.

We’re fiercely committed to the small business community, whether it’s to get a better deal or to assist with a claim. One of our core values is ‘no policy is too small for us’ and we’ll go the extra mile for everyone.

*This is general information only and does not take into account your financial situation, needs, or specific objectives. As with any insurance, cover will be subject to the terms, conditions, and exclusions contained in the policy wording.