Does Small Business Require Public Liability Insurance

home / Does Small Business Require Public Liability Insurance

There are several types of insurance on the market that can help protect your business, one of the most essential is Public Liability Insurance.

Public Liability Insurance protects your business financially from any claims that arise in relation to damage or injuries sustained by third parties and/ or their property during the course of your usual business activities.

Why Is Public Liability Insurance Important?
Public liability insurance protects your business against negligence. If a customer or other third party claims that you or someone in your business has behaved negligently and it has resulted in injury or property damage, public liability insurance can help cover the costs incurred.

Although you would never intend to damage someone’s property, or be involved in a situation that leads to injury, this does not mean you will not be found negligent by a court if any of these scenarios were to occur. Negligence implies not taking proper action in regards to a reasonable foreseeable event; it is nothing to do with intention.

What Does Public Liability Insurance Cover You For?
Public liability insurance protects you financially from any claims made against you, as well covering any compensations costs for which you may be deemed liable.

The majority of public liability policies are able to provide the following coverage:

  • Loss or damage of goods
  • Legal costs
  • Damage or injury caused by your products and services

Some policies may be more extensive than others, by offering additional cover for items such as accidental pollution or first aid expenses.

Although a public liability policy can cover you for a wide variety of scenarios, there are some cases where it will not protect you financially.  The specific circumstances that are not covered will depend on the policy that you choose.  Many public liability policies also have caps on how much they can pay out. There is typically a limit per claim, and on the policy as a whole.  Your broker can discuss these policy exclusions with you.

Does My Business Need Public Liability Insurance?
Most businesses will find public liability insurance relevant to them. However, there are some industries that carry significantly higher risks, where Public Liability Insurance is particularly important. If your business involves any of the following, you should consider Public Liability Insurance:

  • Manufacturing or repairs
  • Working in or visiting areas not owned by your business
  • Regular visitors to your work premises
  • Direct interactions with customers

If you are not sure whether your business requires public liability insurance cover, we recommend that you talk to a broker or insurance professional today about your business and business insurances.

The amount of cover you will need depends on the specifics of your business, but in general, you should get as much as you can afford. Your insurance advisor can help you compare rates and policies from different insurers to find the most appropriate cover for you.  Contact us for more information.

 

 

DISCLAIMER
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.