Sadly, running a business isn’t just about bringing the money in and keeping your customers happy. There is the ‘back room’ work that can be as varied as book keeping and accounting to staffing and stationery supplies. One of these activities is ensuring that you have the necessary protection in place should something go wrong.
There are different types of risk management insurance available for businesses and contractors, all which can help minimise any financial loss as well as personal stress if a claim is made against you. This article looks at public liability insurance.

What does public liability cover do?
In a nutshell, this cover protects you against third party claims made against you and your business for accident and injury. So, say a visitor to your business premises (whether they are a client, a supplier or someone who just happens to be there, maybe the gas meter man for example) slips on split coffee and breaks a leg. They will often seek recompense from you for things that have been affected by them having a broken leg, such as time off work; pain; hospital costs etc.

The costs for something like this, with legal fees, could be crippling for your company. In fact, many small businesses would go under when faced with a claim against them for damages or negligence. Public liability cover could help take away the stress and provide financial assistance with legal and compensation costs.

Where to buy your cover
Getting your insurance can be quick and easy if you go to a specialist provider. Using an independent provider of liability insurance may help to give you access to the right deal, rather than getting your policy via traditional methods such as your bank, who may only be able to offer you one type of cover and at one price. Independent providers sometimes have a pool of policies that means you have a choice of cover – and price.

How much cover?
The sum insured is of great importance. You may find that public liability insurance will come as standard with your business insurance policy and will have a set limit. Check that the amount is right for your needs.

Also consider that, depending on what sector your business is within, some of your clients may insist that you have a minimum sum insured in order to provide them a service, so do check.

Before you buy your insurance, do double check that the policy gives you everything you need – look at the sum insured; excesses; policy exclusions; and how long the insurance must be in force for before you are entitled to make a claim.

Finally, to protect yourself and your livelihood does not have to be a time consuming exercise. A specialist provider of public liability insurance can find you the right solution for your business. Financial collapse caused by a claim against your company is a worry that all business owners face. But you can have peace of mind with this type of cover.

You are liable for the safety of anyone who comes into your place of business. As soon as they step through the door you can be held liable if they should slip, trip or fall. You have probably seen adverts on the TV which proclaim to get you 100% compensation and it could be you and your business that they are claiming from next. In the event of a claim, if you do not have anything to fall back onto such as liability cover then you could be taken to court and it could come down to you having to sell your business if you cannot find the money to pay. With public liability insurance the insurance provider would pay up to so much so you do have to check this amount when you apply for the cover.

The amount that you would be eligible to claim back from your policy would go towards how much you would pay for your insurance so it is essential that you do not take out too much liability cover but have just enough. If you have a large business that brings in many customers each day then you are at greater risk of someone suffering a trip or fall and this makes liability cover all the more important.

The type of business you have would also go towards determining how much you would have to pay for the cover. For instance if you have a business that involves renting out go-karts then your insurance premiums would be higher than if you had a small home run business for trimming hair. You should look for your insurance with a specialist provider who would be able to offer you tailored public liability insurance based on your business needs. There should be no one policy fits all needs as every business is different in its needs and the insurance that is needed. Whatever policy you are considering taking out would have to be checked over very carefully so that you can see what it offers for your business and the cover that it provides. You might not want pay out for a public liability insurance policy that would pay out millions of pounds if a claim had to be made as this would of course cost more.

You are liable for the safety of anyone who comes into your place of business. As soon as they step through the door you can be held liable if they should slip, trip or fall. You have probably seen adverts on the TV which proclaim to get you 100% compensation and it could be you and your business that they are claiming from next. In the event of a claim, if you do not have anything to fall back onto such as liability cover then you could be taken to court and it could come down to you having to sell your business if you cannot find the money to pay. With public liability insurance the insurance provider would pay up to so much so you do have to check this amount when you apply for the cover.

The amount that you would be eligible to claim back from your policy would go towards how much you would pay for your insurance so it is essential that you do not take out too much liability cover but have just enough. If you have a large business that brings in many customers each day then you are at greater risk of someone suffering a trip or fall and this makes liability cover all the more important.

The type of business you have would also go towards determining how much you would have to pay for the cover. For instance if you have a business that involves renting out go-karts then your insurance premiums would be higher than if you had a small home run business for trimming hair. You should look for your insurance with a specialist provider who would be able to offer you tailored public liability insurance based on your business needs. There should be no one policy fits all needs as every business is different in its needs and the insurance that is needed. Whatever policy you are considering taking out would have to be checked over very carefully so that you can see what it offers for your business and the cover that it provides. You might not want pay out for a public liability insurance policy that would pay out millions of pounds if a claim had to be made as this would of course cost more.

You are liable for the safety of anyone who comes into your place of business. As soon as they step through the door you can be held liable if they should slip, trip or fall. You have probably seen adverts on the TV which proclaim to get you 100% compensation and it could be you and your business that they are claiming from next.

In the event of a claim, if you do not have anything to fall back onto such as liability cover then you could be taken to court and it could come down to you having to sell your business if you cannot find the money to pay. With public liability insurance the insurance provider would pay up to so much so you do have to check this amount when you apply for the cover.

The amount that you would be eligible to claim back from your policy would go towards how much you would pay for your insurance so it is essential that you do not take out too much liability cover but have just enough. If you have a large business that brings in many customers each day then you are at greater risk of someone suffering a trip or fall and this makes liability cover all the more important.

The type of business you have would also go towards determining how much you would have to pay for the cover. For instance if you have a business that involves renting out go-karts then your insurance premiums would be higher than if you had a small home run business for trimming hair. You should look for your insurance with a specialist provider who would be able to offer you tailored public liability insurance based on your business needs.

There should be no one policy fits all needs as every business is different in its needs and the insurance that is needed. Whatever policy you are considering taking out would have to be checked over very carefully so that you can see what it offers for your business and the cover that it provides. You might not want pay out for a public liability insurance policy that would pay out millions of pounds if a claim had to be made as this would of course cost more.

You are liable for the safety of anyone who comes into your place of business. As soon as they step through the door you can be held liable if they should slip, trip or fall. You have probably seen adverts on the TV which proclaim to get you 100% compensation and it could be you and your business that they are claiming from next. In the event of a claim, if you do not have anything to fall back onto such as liability cover then you could be taken to court and it could come down to you having to sell your business if you cannot find the money to pay. With public liability insurance the insurance provider would pay up to so much so you do have to check this amount when you apply for the cover.

The amount that you would be eligible to claim back from your policy would go towards how much you would pay for your insurance so it is essential that you do not take out too much liability cover but have just enough. If you have a large business that brings in many customers each day then you are at greater risk of someone suffering a trip or fall and this makes liability cover all the more important.

The type of business you have would also go towards determining how much you would have to pay for the cover. For instance if you have a business that involves renting out go-karts then your insurance premiums would be higher than if you had a small home run business for trimming hair. You should look for your insurance with a specialist provider who would be able to offer you tailored public liability insurance based on your business needs.

There should be no one policy fits all needs as every business is different in its needs and the insurance that is needed. Whatever policy you are considering taking out would have to be checked over very carefully so that you can see what it offers for your business and the cover that it provides. You might not want pay out for a public liability insurance policy that would pay out millions of pounds if a claim had to be made as this would of course cost more.

Here are some examples of these types of claims:

• An old lady trips over the doormat on the way into your shop and breaks her leg. She makes a personal injury claim.
• Your delivery driver reverses into the industrial unit next to yours, making a dent in their roller door. The business sues you for damage to the door.
• Your dry cleaning company ruins a customer’s wedding dress. She sues for the damage.

Claims are increasing due to the growing “compensation culture” in the UK. This could be due to the prevalence of no win, no fee deals offered by lawyers for these kinds of legal actions. Such deals mean that the claimant has little or nothing to lose in the way of legal costs.

The potential damages for a claim can run to hundreds of thousands of pounds. It is no defence to say that you cannot afford to pay the claim – an uninsured business could go under due to a claim. Not only are the amounts of compensation high, but if you lose such a claim, you would be obliged to pay the claimant’s legal costs, which may run to tens of thousands of pounds in themselves.

Perhaps surprisingly, public liability insurance is not compulsory, but should be a priority for any business. A successful large claim against a firm could threaten its survival. Also, not having public liability cover or being underinsured could mean losing orders. It is common practice when purchasers invite tenders for work to ask to see evidence of adequate public liability insurance.

What will it cost?
Public liability premiums depend on the type of business you are carrying out. For example, pharmaceuticals and businesses using dangerous chemicals carry higher risks than most, so would be charged more than a less risky occupation like running a café. Also, the premium you are charged may be linked to your business’s turnover.

What will it look like?
In addition to the schedule which details what is covered and what is not, your public liability insurance policy may have conditions attached to it relating to the way you carry on your business. For example, the insurer may examine and prescribe your risk management procedure, and expect a warranty from you to train your staff to adhere to it. The policy might also contain excesses.

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.