One of the great beauties of public liability insurance is that it covers such a very wide range of accidents and mishaps which can arise out of the conduct of a small business’ normal, daily activities. Indeed, the range is so wide, and the risk of the business incurring some degree of liability when things go wrong, that it can prove practically impossible for many small businesses to operate without it.

Accidents and mishaps can occur either on your business premises or away from them. They can involve clients, customers, potential clients and customers, or members of the general public. If any of these suffer loss or damage to their property or sustain an injury as the result of some action or inaction on the part of your business, your business can be held liable and, therefore, obliged to compensate the claimants. Without adequate public liability insurance, therefore, the drain on business finances can be potentially very damaging. Because of such a threat to the viability of the business itself, in fact, many clients and customers will stipulate as a contractual requirement that the business holds such insurance.

The reason for such strictures is that public liability claims can prove so expensive. In the case of personal injury claims, for example, the damages can extend not just to medical treatment, but also for the associated legal costs in establishing liability and proving the claim, any of the victim’s loss of earnings as a result of his or her injury and such claims for general damages as psychological injury. Even medical treatment provided by the National Health Service or the call-out of an ambulance are subject to being reclaimed by the relevant services once the business liability has been established.

The level of public liability insurance cover required by most businesses, therefore, ranges from £1 million to £5 million, with £2 million being typical for most small businesses.

Public liability insurance, therefore, is an important consideration for any business, but especially those where customers and clients are likely to be visiting the business premises, including those where the business is conducted from the owner’s home.

Although there is no statutory requirement for any business to hold public liability insurance, the financial risks of potentially crippling claims against the business, clearly makes it sensible for most to do so. Indeed, if the business is a horse riding or equestrian centre, then adequate public liability insurance is a legal requirement.

Tags | Public Liability Insurance