What Is It?

Public Liability Cover should be considered if members of the public, clients or customers visit your premises. If you run a home-business, and customers sometimes visit you there, public liability cover might also be a good idea.

What does it cover?

Public Liability insurance will cover you if someone is accidentally injured by you or your business operation. It will also cover you if you damage third party property while on business. The cover should include any legal fees and expenses which result from any claim by a third party.

This type of insurance will only cover third party claims (i.e. not your own employees - you need Employers Liability Insurance for your own employees).

You should always ensure that your insurer knows what type of business you run, and you should always inform them if your circumstances change, as this may affect your policy.

Examples of Claims

1) You run a dry cleaning business. A customer comes in to pick up some clothes, but trips up on a loose bit of flooring in your shop. Public liability insurance would cover your business if the customer claimed for injuries sustained as a result of the un-maintained floor.

2) You are a self-employed IT support technician. Whilst at a customer's site, you accidentally knock over a cup of coffee, and the contents pour down the back of a computer, damaging it beyond repair. Public liability insurance would cover any claim from the customer.

How much cover do I need?

This will depend on the nature and size of your business operation. Many small businesses will have £1m cover - this may sound a lot, but if you suddenly have several claims against you, the costs can mount up. Despite the seemingly large amount of cover, typical premiums are not high.