All You Need to Know About Public Liability

When setting up your business there may be a lot of legal terms batted about that you are unsure of. One of these may be ‘public liability’, often in conjunction with everyone’s favourite word; ‘insurance’. Hearing so many different words get thrown about by lawyers and insurance brokers can get confusing. When it comes to your business, you need to know every corner of it and that includes knowledge of all the areas where you can potentially lose money; such as public liability.

What is Public Liability?

Public Liability is used to cover you in the event a member of the public makes a claim against you for an accident that occurred on your business’s property. No matter how careful and conscientious a business owner you are, accidents can occur at the drop of a hat. For example, a client could slip and injure themselves, leaving you with a claim that you cannot cover using just your business’s finances.

Being ordered to pay for medical or compensation costs on top of your legal fees will all add up quickly. If you do not have the right means to get through this difficult time, you can quickly find yourself in financial trouble and even face bankruptcy, all due to a minor mistake.

Small businesses are particularly vulnerable to financial devastation as the result of a claim. SME specialists Hiscox have a more tailored  guide with all the information on public liability for small businesses. If you need to get up to speed on the jargon you may want to start your research here.

A Helping Hand

This is where public liability insurance comes in. This type of insurance will help cover any costs that arise when a member of the public makes a claim against you. Any good professional insurance provider should be able to include public liability insurance amongst your other policies.

It is not the same insurance used when an employee makes a claim. That would be employer’s liability insurance and you must have it as soon as you hire someone to help with the business.

Do I Need Public Liability Insurance?

If you interact with clients in person, either on a shop floor or in an office then, yes, you definitely need public liability insurance. While not a mandatory requirement, it is seen as a positive to councils and other regulatory bodies and can help protect you in the long-run.

You can also take out public liability insurance for one-time events. If you are holding a big fundraiser or another type of public event where you are due to host a lot of people, insurance might be the last thing on your mind – but you need to ensure you have a comprehensive policy. Anything could happen and you need to be fully prepared.

Think carefully about whether you will need public liability insurance. The public doesn’t only visit offices and shops. If you own a restaurant, a guest house or even if you are a landlord, make sure your insurances policies include public liability. You never know when a claim is going to be made.