Public Liability Insurance

Public Liability Insurance

Public Liability Insurance provides protection in the event a claim is made against your business for injury to people, or damage to third party property.

Who needs public liability insurance?

Any business enterprise (including sole traders) should have Public Liability insurance in place as they could be exposing themselves to possible claims against them, or, financial loss if proven to be at fault. It is also important to be aware of any insuring requirements that might be in place in any agreement or contract that is signed. Often there are requirements for set levels of PL to be maintained within these.

What happens if you don’t have public liability insurance?

In the event you do not have public liability, you could become liable for a huge payout if the unexpected happens. This could result in you losing your business, your livelihood and in some extreme cases, your own personal assets.

What is the limit for public liability insurance?

The standard limits are £1m, £2m or £5m however limits in to the hundreds of millions can be found if needs be.

Do I need public liability if I’m a sole trader?

If you regularly work in customers’ homes and other residential or private properties, then you will already be aware of the risks faced to avoid damage to property and or injury to clients. With this in mind, having Public liability insurance would remove the financial risks associated with being a sole trader.

How much does Public Liability insurance cost?

This will depend on the level of cover needed and the type of business you are in. Trades that work with height, heat and water tend to pose the most risks in the eyes of insurers. Therefore, most insurers will base their premium on the kind of business and also turnover (not profit) as a way of estimating how active your business is.

Even though the cover is an optional purchase, it is prudent to weigh the costs of a policy premium versus the cost of a claim.