Public Liability explained
Public liability insurance can offer simple but essential protection if a customer or member of the public makes a claim against your business for accidental injury, or damage to their property.
What does Public Liability Insurance cover?
Public liability insurance can cover legal and compensation costs associated with a claim made against your business.
As a business owner you will be aware of the kind of risks your business may be exposed to but accidents can happen to anyone. If someone believes that you, your employees, or your business activities have caused them harm or damage to their property, they can make a claim.
For instance, this could be if a customer has slipped on a wet floor in your shop, or a member of the public has been injured in the street by fallen signage from your fascia or dislodged roof tile.
Do I need Public Liability Insurance?
It’s not a legal requirement to have public liability cover but as a business that interacts with the general public, it is one you should consider. For instance, public liability insurance is usually taken out by shop owners, hairdressers, barbers and café and restaurant owners.
No matter how careful we are, any business is vulnerable to a claim. We cannot foresee all the trips and slips that could occur which could form the basis of a claim. It only takes one incident to disrupt your business and your financial position.
Think of it this way, could you afford to meet the costs involved if your business was faced with a compensation claim and you didn’t have cover in place?
How much Public Liability Insurance do I need?
It’s up to you to decide how much public liability insurance you need.
To ensure you get the right level of cover, you should think about the possible extent of a compensation claim in the event that something did happen. But it is also worth checking whether there is an expectation from your clients or customers to have a certain level of cover.
The Retail Mutual offers public liability cover for up to £5 million as part of our Business Cover offering.
How much does Public Liability Insurance cost?
There is no standard price for public liability insurance. There are several factors which can impact the price offered by insurers, for instance the nature of your business, your claims history and the level of cover required.
Is Public Liability Insurance compulsory by law?
Public liability insurance is not a legal requirement. But it is worth considering as it can protect you should someone make a compensation claim against you.
As a retail business, you will be expecting customers through your door and having public liability cover in place can protect you from third-party claims against accidental injury believed to be caused by your business.
Does Public Liability Insurance cover employees?
Public liability insurance isn’t designed to cover employees. It’s intended to cover third-party claims made by a customer or member of public because they’ve suffered injury or property damage by your business.
If you’re looking to cover claims from members of staff for injury or damage suffered in the workplace, you will need employers’ liability cover.