Public liability insurance is one which is often overlooked by businesses, particularly small ones, and can be difficult to understand and a minefield to navigate. It isn’t easy to find information about the necessity (or not) of public liability insurance and, as it isn’t a compulsory insurance, many may feel that they do not need to consider it, or it’s not worth getting. Does your business need public liability insurance and, if so, which level of cover should you get?
If you have any contact at all with members of the public, it’s a good idea to look into buying public liability insurance. ‘Contact’ can take many forms, from in-person, as in businesses such as hairdressers and tradesmen; to businesses that sell products, even if they don’t have a physical shop. For example, a carpenter may make a table to be used at a market, part of which could fall off and injure a passer-by. Public liability insurance will cover any compensation claimed by the client, tempering which would otherwise be a very costly incident for the carpenter.
How much public liability insurance to opt for will depend on your business. If you have little interaction with the public, you may find a lower amount of protection will cover you adequately, which is usually about £1 million, but insurers will usually also offer cover of larger amounts. It’s a good idea to arrange an appointment with your broker to discuss your options, making sure you get the right amount of cover for your business.
It’s tempted to think that your small business couldn’t possibly be in a situation in which it would need to be insured against compensation claims, but it is always best to be prepared. Public liability insurance is a relatively low-cost cover, and definitely one worth considering for your small business.
