Public Liability Insurance Cover: What Is It And Who Needs It?

Public Liability Insurance is an essential policy to take out if you are in business. Public Liability Insurance ensures a business is covered in the event that a mistake is made which causes an injury to the member of the public or a customer or causes damages to their property.

What type of company should take out Public Liability Insurance?

If your business brings you into contact with members of the public then you should seriously consider taking out Public Liability Insurance cover. This type of insurance will protect your business if you are on their property or they come to your premises.
Generally speaking, any company that is likely to come into regular contact with the general public should consider taking out this policy. If you a builder, a plumber, an electrician or work in the construction industry then this policy will help protect your business.

Who is required to take out Public Liability Insurance?

Despite Public Liability Insurance being a very useful policy for many businesses to consider, a company is not legally obliged to take out this policy. The only exception to this rule are horse riding establishments as under law they are required to take out Public Liability Insurance cover.

How much will Public Liability Insurance cost a business?

Public Liability Insurance cover is based on the type of business and rated on an estimate for the level of activity of the business. This estimate will usually be deduced from a business’s turnover. Typically, a small business will be required to purchase £1 million of public liability insurance cover. While this might seem like a large amount this type of insurance will not usually have high yearly premiums.

Before you agree to taking out any policy it is essential that you check that your business is covered for the right things. You need to check that you are covered for everything you need to be covered for. It is also vital that you check for any exclusions in the contract. While a business might be able to get cheaper cover, it is pointless taking out a cheaper policy if it doesn’t cover you for events that may cuase damage to your business.

Don’t forget that there may be other types of small insurance policies that a business might need to protect themselves like Employers Liability Insurance