The cost of public liability insurance premiums is based on the type of business and its level of activity. Businesses need to consider all potential damage that could be caused to a customer on their premises as well as cost effectiveness when deciding how much cover they will need. The occupiers of large premises which are frequented by the public, such as shopping centres, pubs, sporting venues etc are at the highest risk of public liability claims. The risk is increased further when major events and the consumption of alcohol are involved.
Public liability insurance is not compulsory for all types of business; however, businesses do have a legal responsibility for the safety of their customers, clients or anyone else that visits their premises or has dealings with them. If people visit your premises or you go to theirs as part of your work activities you should certainly consider taking a public liability insurance policy. Most organisations choose to have it as it will provide valuable protection in the event of accidents, which can turn into lawsuits big enough to put smaller organisations out of business.
Damage caused by accidents and legal action under negligence or strict liability legislation will usually be covered by public liability insurance, however, any criminal proceedings brought against you or your business as the result of damage caused intentionally or recklessly will be excluded from a public liability policy. This is rule is in place to prevent criminals, particularly those involved in organised crime, from getting insurance to fund their defence and thus encouraging the commission of crime.
Any products your business produces or sells are also not covered by public liability insurance.
To cover claims made against you for supplying damaged, defective or dangerous products you’ll need to take out product liability insurance as well.
No two businesses are the same, a public liability policy like any other type of insurance, needs to reflect this and be specifically tailored to meet the needs of your business and protect your clients and customers. More than £5 billion was paid out in claims on public liability insurance in 2010 in the UK, an accident happening which you don’t have insurance for could do some serious damage to your business. Premiums for public liability insurance can be as little as £100 a year, so saving money is hardly worth the risk.
