Running a small business isn’t easy these days and insuring your business can make matters more daunting!

Not only must you stay on top of changes within your industry just to remain competitive, but there are far more regulations now. One mistake could cost you your entire business. I

In this article, we’ll explore why you need public liability insurance.

Why do You Need Public Liability Insurance?

Imagine, for a moment, that you’re a gardener. While taking care of a property one day, you leave your tools unattended for a moment to walk back to your truck for supplies.

A small child comes running along the path, trips, then is badly injured on your tools. The result? The parents file an accident claim against you, and you can expect the total costs to run into the tens of thousands of pounds.

Is there anything you can do to protect your business ahead of time? Absolutely.

Public liability insurance can help.

Definition

Public liability insurance is sometimes called tradesman insurance. It’s hardly just for those who practice a trade. Instead, it’s for a number of different kinds of businesses. Public liability insurance can cover compensation claims from members of the public or even your own customers. It typically covers the costs associated with personal injuries, property damage, or even death.

In most cases, it will cover any claims that occurred on your business’ premises. In addition anything that took place during an activity organised by your company.

Is it a legal requirement to have public liability insurance?

While it is not a legal requirement,public liability coverage is vital to the success of your business. Not sure why you need it? Think about what you do from day to day. Imagine a situation in which you accidentally damage a client’s property. Imagine someone trips over the pavement near your property as they walk by. Imagine a customer picks up a hot tool and burns themselves. All of these can result in accident claims.

Today, people have more access to ‘no win no fee’ legal services, and that makes them more likely to claim compensation than ever before. Add that to the fact that some companies won’t work with suppliers who don’t currently have public liability insurance in place, and you have a situation in which you simply must purchase it for your business.

How much does public liability insurance cost?

When you’re ready to purchase a public liability policy, you’ll want to look closely at what may be available to you.

Public liability covers typically come in denominations of £1m, £2m, £5m, £10m, though there are some companies that will happily customise a policy to meet your needs.

Keep in mind that choosing the right level here is important. It will help to keep your premiums in check. Lower cover levels, though, aren’t always best. If you want to bid for a government contract, for example, you may have to have a higher level, so do your homework to find out what might work well for your company.

How much public liability insurance do I need?

The best thing you can do is to assess your risk carefully before you think about purchasing a policy. If there are clear safety hazards you can control, do so immediately, as it can mean reductions in premiums. In addition to looking at cover levels, there are other points to factor in as well.

If you have employees, you may want to add coverage for them. You may also want to add coverage if you have valuable trade tools and equipment so that if damage occurs, you won’t have excessive out of pocket expenses.

Premiums vary from industry to industry, and they typically work to factor in the type of business you’re in, the number of people on your staff, and any claim history you may have in the past.

You may also want to check any insurance policies you have in place, as sometimes public liability claims may be automatically covered.

Other Types of Business Insurance

Public liability insurance is far from the only type of business insurance available. Instead, there are a number of different types, all working toward the goal of mitigating the risks so many businesses must take these days. Risk is at every turn. Customers can be a risk, but so can employees. Even your premises and assets can be a risk.

Business insurance products work to safeguard everything, and it may even be required by law. From simple products like those that cover theft or damage to your building to more complex choices like employer’s liability coverage, investigating your insurance options immediately and learning more about what might be right for you is an absolute must.  

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