Business Ways

Whether you’re leasing or own your business premises outright, there are a number of very important contractual and rather technical legal points that you must observe if your business is to be run within the margins of the law. If you often find yourself asking “what is Public Liability insurance ?” and “what does the law say about Public Liability insurance ?”, then read on for a comprehensive overview of what it is, what it covers, and what it doesn’t cover.

What does Public Liability insurance cover?
Public liability insurance provides your business with financial protection against claims for injuries and personal property damages that are brought against it, either on your premises, on a customer’s premises or in a public space, when you’re going about your usual business operations there. Claims can come from any third party, such as customers, clients, the general public, suppliers, tradespeople etc.

Is there anything else Public Liability insurance covers?
Yes. In addition to covering your third party customers and business associates, it also usually covers other mishaps that you might encounter while going about your day-to-day business operations, such as damage to, theft or loss of equipment that your business owns or has rented or hired out from a third-party supplier.

Similarly, it also covers goods for damage, theft or loss while in transit.

How much will Public Liability insurance cover me for?
Your insurer will work, with your cooperation and guidance to place a financial value on how your business operates, the equipment and goods it will use in the process, and the risk posed to the third parties you and/or the employees of your business will come into contact with on a day-to-day basis.

Based on the outcome of the risk assessment your insurance broker conducts, your cover will be calculated, and the cover provided by Public Liability insurance is usually charged at £1million, £2million, £5million and £10million increments, depending on the needs of your business. Employer’s Liability insurance, however, which business owners are legally required to take out if they employ staff, covers claims of up to £10million.