Public liability insurance can help to protect your business if someone were to make a claim against you or the company itself. Whilst we can all be as careful as possible and follow health and safety protocol, ultimately, accidents can still happen within the workplace.
When an employee or member of the public suffers from an accident and makes an injury claim against your business, it can be costly for the business. Doug Kelley, Director of Bluedrop Services insurance brokers, gives a review of how Public liability insurance can help protect your business against the cost of a claim.
What is covered by public liability insurance?
When an accident occurs within the workplace and an employee or member of the public makes a claim your business may need to pay for compensation to that individual.
Any costs associated with this, including legal fees and the cost of payments are covered by public liability insurance. It can be used to cover any accident within your business or work associated with your business. This can be offsite as well as on the premises.
Public liability will cover any claim for injury or property damage to third parties that come into contact with your business. This could be any member of the public or any customer, supplier or employee.
What types of businesses would need it?
There are certain industries where a business is more likely to require investment in public liability insurance. The types of business are likely to be those working in a trade environment such as construction, electricians, carpenters, gardeners, decorators and plumbers.
Whilst this is a typical list of types of business that are more likely to need public liability insurance, any business that comes into contact with members of the public are still at risk.
What situations are likely to case the need for public liability insurance?
Even if you’re not mentioned in the industries highlighted below, there may still be a risk that customers or members of the public can suffer from injury or accident. There are certain situations that businesses need to consider when they’re thinking about their insurance plan.
- When your business is open to the public
It may be a retail store or a lobby of a hotel but any place where your business gives access to the public can be at risk. Accidents can happen anywhere, so public liability insurance can help to protect against this.
- Workers in other people’s premises
When not working directly on your own business premises, public liability can help cover you when a third party’s property is damaged when you’re at their premises for work.
For example, this could be a plumber where damage can be caused by a leak if something were to go wrong. Any accidental damage is covered so works well for tradesmen that may visit a number of different sites regularly.
- When tools are required to do the job
When tools are involved in any job, an accident may occur. Even a small accident can be costly to your business. Public liability insurance can help protect your business against any small accidents such as the dropping of equipment that causes injury.
- When the product could accidentally harm others
It’s not always the trade industry that requires public liability insurance, those working in hospitality could have an accident when it comes to allergens or food poisoning which could impact your customers and cause a claim to be made against you.
- When you employ staff
It’s not just the business that can be responsible for accidental injury or harm. But your business can also be responsible for the actions of employees too. If you are a business that employs others that regularly go out of the business or are involved in tasks that may cause accidental harm, then public liability insurance can help to protect you.
- When your business is growing
As a business grows, it may be more important to obtain public liability insurance. This is due to the fact that some professional bodies will expect you to have it. Public liability can help in setting yourself up as a viable business and to get backing from local government and other professional bodies.
Accidents can always happen, so it’s better to have peace of mind within your business to know that you have coverage if anything were to happen. It can help to protect the business and help avoid any expenses claims to keep the business running smoothly.For more information read our guide to public liability insurance.