Public Liability Insurance – A Must For Any Business

by Five Fantastic Lawyers™ on August 3, 2012

Public liability insurance is a vital product that all companies must take out. It basically covers a company if a member of the public injures themselves or suffers a loss as a result of its activities. Any claim made by the member of the public would be settled by the insurance company as well as the legal fees.

It provides great peace of mind for businesses; as we all know accidents can happen, even with the correct precautions being taken. It is of particular importance in industries such as the construction one or for tradesman who are carrying out work in people’s homes. As well as injury, any damage to property caused as a result of negligence or even by accident will be covered by public liability insurance.  The word “loss” can also cover a loss of earnings for the claimant as a result of the damages caused.

It is important to note that public liability insurance does not cover the individual in the case of a tradesman or the employees in the case of a company, employer’s liability insurance is needed to cover this.

If a company is either visiting customer’s premises or have people visiting their own premises, then public liability insurance is a must. It is also important for small companies, as the cost of defending or paying out for a claim can be an expense they just can’t afford, meaning the company can be shut down. For the sake of premiums as little as £40 per year in some cases, to get protection for claims up to one million pound, it really is a piece of mind any business must have.

Depending on the industry, is dependent on how high the premiums will be. It goes without saying that leisure industries, such as shopping centres and sports stadiums where vast numbers of people are visiting will pay higher premiums due to the greater risk of their being a claim being made. Bars and clubs will also pay higher premiums due to the consumption of alcohol on the premises.

For tradesman, although not a legal requirement, companies will not work with you unless you have public liability insurance and customers are likely to ask as well. After all, you know the insurance company will be able to pay out any claim, whereas individuals are unlikely to have that cash available.

When starting a company, there are numerous things to sort, and insurance can be easily forgotten, but it is imperative you remember to take out public liability insurance, otherwise one mistake and the business could be over before it has begun.

Samuel Hilr shares his interest on Insurance on behalf of Contractors

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