What does Public Liability cover?

Public Liability, third-party insurance covers everyone you interact with in your business transactions apart from employees. These people may include clients, customers, people participating in your events, and people watching a game you organised. So, what exactly does public liability cover? In case of a claim, the insurer covers the following.

a. Compensation claims

The insurer will take care of claims that arise from injuries to a third party or loss of property. Irrespective of where the incident took place.

b. Legal expenses

If a third party sues you, the claim will cover your legal fees and legal proceedings.

c. Repair costs

The claim also handles the cost of repairs to a clients’ property.

d. Medical fees

The insurer pays the cost of hospital treatment in the event of an injury or illness. The settlement is inclusive of the charge of calling an ambulance.

What is excluded from public liability cover?

All policies differ depending on the type of the business. It is, however, safe to say that third-party insurance will not cover the following events:

• Personal accidents and injuries or accidents that affect employees.
• Damage to owners’ property or employees’ property.
• A deliberate act of damage.

General business insurance policy and employers liability insurance can provide cover in the above situations.

What is proof of third-party insurance?

You are to provide proof of third-party insurance if you deal with contract work. It is an assurance to your client that you have the appropriate level of cover for the job.

You will need to show the schedule of insurance given to you when you purchase your insurance policy.

 

How much public liability cover do you need?

The decision of on the level of cover for your business is entirely up to you and depends greatly on your industry. The best judge is yourself as you understand the risks involved in your business and also the number of premiums your business can afford. The best way to calculate they cover required is to think of the worst case scenario and the claims you may need to cover, of course if you require any help don’t hesitate to contact our small business advisors and we can help with information and maybe other risk you may not have considered. As a business owner, you need to weigh the cost of the policy against the loss. However, in some circumstance you may be contractually obligated to take a particular amount of cover by a client.

Insurance covers start from £1 million and may go up to £10 million. The cost depends on the nature and size of the business. The more the risk, the more you pay. We offer complete business insurance policies including mulitple insurance types such as third-party together with employers liability and professional indemnity. It is cost effective to purchase a bundled insurance policy instead of each policy separately.

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