Does your business need public liability insurance?

It is not compulsory by law to have public liability cover, but it highly recommended, whether you are a self-employed small business, an employee or a company director. All of these positions leave you potentially liable for claims caused by injury to a member of the public or property damage. The law will hold you financially responsible for losses created through negligence on the part of the business or any employee of it and this can mean damages plus legal and medical costs. Most insurance providers that offer public liability policies – such as Endsleigh – will have specialised policies for different types of business, with further information available online at company sites such as http://endsleigh.co.uk.

What areas does it cover?

Public liability insurance provides protection against the risk of bodily injury or property damage caused by negligence. In terms of injury, this means to a member of the public or a client – not to an employee of the business. With property damage it can cover damage to property owned by a third party or that owned by the business. It also covers you for such injuries and damage which occur away from your business premises. It does not provide protection in the wake of claims against you or your business for negligent advice – for example an inaccurate diagnosis made by a doctor. It also does not cover injuries to employees of the business – this is covered by employee liability insurance.

How much does it cost?

While the premiums vary, basic level public liability cover can usually be secured for approximately £60 per year, with the addition of tax on insurance premiums. The factors that lead to varying prices include the type of business, the number of employees and the level of estimated risk based on these factors. Small businesses are currently advised to seek cover at a minimum level of £1 million, while larger businesses are advised to seek around £10 million cover.