Public Liability Insurance

Public liability insurance covers compensation payments won by a member of the public who has sustained an injury, damage to their property or another type of loss which was caused by the insured business or individual. A public liability insurance policy will also cover the legal costs involved in these proceedings and any medical or other expenses incurred as a result of the injury/damage caused.
The cost of public liability insurance premiums depends on the type of business and its level of activity. Businesses need to consider all potential damage that may be caused to a visitor on their premises, as well as cost effectiveness, when deciding on the 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; this risk is increased further if a major event is happening and the consumption of alcohol is involved.
Public liability insurance is not mandatory for all types of business; however, there is a legal responsibility for businesses to guard the health and 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 definitely consider taking out a public liability insurance policy. Most organisations choose to have one in place as it will provide valuable protection in the event of an accident, which can turn into a lawsuit 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. 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 rule is in place to prevent criminals and organised crime, from having insurance to fund their defence when they have broken the law.
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 ensure that you also have product liability insurance.
No two businesses are the same, a public liability policy, like any other type of insurance, needs to reflect this and be tailored to meet the individual 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. If an accident happens and you aren’t covered it could do some serious damage or even mean the end of your business. Premiums for public liability insurance can be as little as £100 a year, so saving money is hardly worth the risk. Head to www.lawontheweb.co.uk for more information about getting a great deal on insurance and other financial services.