Public Liability Insurance: What Is It?

Public liability insurance is one of the principal kinds of business insurance. It covers compensation payment and legal cost if your business is held responsible for injury or property damage to a client, contractor, customer, supplier or passerby.

Public liability insurance is not made to cover employees. Instead, it is designed to protect you from third party claims made by a member of the public, client or a customer. Therefore, you need different insurance for your employees.

How Does Public Liability Insurance Work?

For instance, an employee in your cleaning company fails to put a wet floor sign after cleaning the floor and some slips and breaks a bone, or you visit a customer and accidentally spoil their machinery. Your business will be sued for damages and injury in both cases.

Public liability insurance will cover the legal fee and compensation cost in both events. In addition, the insurance will cover you under your policy.

Public Liability Insurance Cost

Like other insurance covers, the cost of public liability insurance will depend on several features, including the type of business you run and the level of cover you select. For example, if your company has a high risk, you will pay a higher price for the insurance policy.

What Does Public Liability Insurance Cover?

Insurance covers legal costs when a business is sued due to damages or injury to a client or customer. It also covers compensation costs for the damage caused.

Do You Need Public Liability Insurance?

You need to acquire public liability insurance. Insurance is not a legal requirement. However, it will cover you against any risks when interacting with the general public or clients.

The public liability insurance is usually bought by tradesmen, hairdressers, restaurant owners and shop owners. This is because they interact with the public more often.

If your business works with the general public a lot, you should consider public liability insurance. If you’re looking for an insurance adviser to point you in the right direction, why not consider Insurance Advisernet? Visit our website or contact us for more information.