What is Public Liability Insurance?
Public liability insurance generally covers your legal liability for claims made against you by a third party for any injury to them or damage to property as a result of your negligence. As part of such a policy, cover usually extends to include products liability being your legal liability for a claim made against you for any supplied products causing injury, damage.
Who needs Public Liability Insurance?
Public Liability Insurance provides important protection for both individuals and businesses. You may not be aware but the majority of the everyday personal insurance policies you buy such as car, home, pet and travel insurance usually provide as standard a form of public liability cover. For a business public liability insurance is generally purchased either separately or as part of a portfolio of covers within a policy which may also include employer’s liability, contractor’s works, plant insurance or part of a property, material damage lead policy usually referred to as a commercial combined insurance or shop, office insurance. In most cases public liability insurance is not compulsory by law but generally, especially if you are working for local authorities, it is a requirement of your employer and regarded as good business practice that you arrange such cover.
Here is an example of a possible claim
Mr Jones, a window cleaner is at the top of his ladder cleaning a customer’s window. He accidentally drops a bucket and it hits a passerby on the head. The passerby receives an injury and as a result issues legal proceedings against Mr Jones. Mr Jones public liability policy covers him for the legal costs to defend the claim where possible and pay any agreed damages, claimant’s solicitor’s costs where applicable subject to the policy excess that may apply although some policies, an excess will only apply to any property damage rather than injury.
What cover do I need?
Public Liability Insurance cover usually starts at £1,000,000 but serious consideration should be given to the amount of cover you buy. The amount of cover you need depends on the work that you do and the locations you work at and in many cases your customer will also advise the minimum amount of cover they expect you to have. This is often seen when working on local government contracts or for large corporate companies. You may be required to have £5,000,000 or even £10,000,000 and in some cases as much as £25,000,000.
Optional extra covers which can be included on a Public Liability Insurance policy
If you would like any more information on the any of the above mentioned policies or a quotation for public liability insurance please call our commercial lines team on 01375 487371.