One of the more common subsidiary’s of the wider ‘Liability Insurance’, Public Liability Insurance, whilst not a compulsory business insurance, can be a lifeline for any working company or individual should something an incident occur with a member of the public.

What is Public Liability Insurance and why is it needed?

Ideal for any individual or company working with the public, or where the public visit a company’s premises, Public Liability Insurance ensures that the company or individual is covered should an accident occur to a member of the public on their premises. Further to this, Public Liability Insurance also covers any accidents or incidents that may occur when the individual or company is carrying work out on their client’s premises.

Including the cost of all legal fees’ that may occur, whilst not mandatory, Public Liability Insurance is highly recommended for anyone carrying out work with the public.

It has to be noted that Public Liability Insurance only covers claims from third party’s and not employees of your company. This is where Employer’s Liability Insurance comes into play.

What exactly does it cover?

Public Liability Insurance covers the individual or the company in the event of an accident on your premises or their premises. Imagine one of the following scenarios -

A small-scale wedding business has just opened its first shop in a small shopping centre. When trying on a selection or wedding dresses, a lady trips on one of the wedding dresses that has been left on a chair, trailing on the floor, breaking her wrist. Public Liability Insurance would cover any expenses incurred should the lady pursue a claim against the business.

Out on location for magazine photo shoot, a freelance photographer leaves one of his tripods lying down on the floor. A member of the public walks by and falls over the tripod and injures her arm. Public Liability Insurance with ensure that the photographer was covered if the member of the public claimed against them.

How much cover is needed and how much will it cost?

For small businesses, Public Liability Insurance with a cover of £1m will generally suffice. Whilst the figure of £1m may seem excessive, if an incident happened and several claims were made against the company or individual, then the costs can soon mount up.

The positive side about Public Liability Insurance is that, although the cover of £1m is a substantial one, it is not directly reflected in the premiums that are paid. It’s impossible to give a ‘general’ premium cost, as it varies quite considerably from business to business. Companies such as pubs and shopping centre’s will have a much higher premium than a self-employed consultant who works 90% of the time from home, as there is a much more higher risk that an individual will be injured in the shopping centre than there is when in contact with the self-employed consultant. However, for a small business with a modest footfall figure, Public Liability Insurance can be purchased from around £10 per month, which is a small fee to pay should something happen resulting in a claim needing to be made.

Public liability insurance is an insurance that all business should have if they have some contact with the public. It’s not a compulsory insurance – but it definitely should be.