Public Liability Insurance

We all know that customers are the most important part of any business. They are our reason our company or business keeps going and they, most certainly, are always right.

We all want to keep our customers as safe as possible but, sadly, sometimes incidents occur which end up with a visitor onto our premises being hurt or injured in some way.

If this were to happen, a business needs to protect itself against the “where there’s blame there’s a claim” culture and this is where public liability insurance comes into the picture. It’s a way of helping business protect themselves against any damages which may have to be paid out to a customer as the result of some sort of accident.

Any business which has people not employed by the company entering the private premises of said business needs some sort of public liability insurance.  This type of insurance will protect you against any damages you need to pay out.  It also covers all legal fees related to any claims which may be taken to court. Basically it ensures that your business can continue running and can afford to keep going whilst dealing with the claims which will inevitably come the way of any business which is in contact with customers or clients on a face to face basis.  If the NHS claims any costs from you, these can also be covered under public liability insurance; it’s there to protect you, but to protect your customer base as well.

The premiums which your business will be asked to pay by an insurer will be based on the type of business which you are running and also the level of activity from the business as well. If you have a large company which is constantly in contact with customers on its own grounds then your premiums will be higher than a small business which rarely has face to face contact with its clients.  Premiums for a hotel, for example, will likely be measured by the number of beds in order to get a good estimate of the number of guests the hotel regularly deals with.  With most businesses, however, the turnover is what will be used to determine the premiums.

Because the stakes are so high with something like public liability insurance it is always best to talk to a professional as well as to do your own research through the plethora of price comparison websites which are out there.  In order to get a good grasp of the different conditions and exclusions which come with Public Liability insurance, you really do need to be armed with as much information as possible. By going through BIBA, the British Insurance Brokers Association, you can be sure that you are getting the highest quality of advice and that it will be as professional as is possible. You don’t want to risk your entire business and your career simply because you didn’t understand something; get everything explained to you in the simplest, most understandable for and then, just to make sure, get everything explained to you again. Don’t be afraid to ask questions, this is too important to keep quiet about.

If speaking generally, it would not be incorrect to say that public liability insurance is not compulsory.  Certain business, such as horse-riding ones, are legally required to have PL insurance though.  In these consumer-savvy times, it is also not uncommon for customers themselves, or employees, to demand to see proof of public liability insurance before they work for or become involved with a company.  In these competitive times, if you can prove to a customer that they in good hands and are properly protected then they may well be more likely to choose your company over one of your rivals. 

No matter how strictly you try to adhere to health and safety regulations, no matter how much you try to keep safe and no matter how much money you spend fool-proofing your business environment, you can never fully protect yourself against a third party claim against your business. Some people will always look for an excuse to go after the money and, with many firms now actively encouraging people to sue for damages after the most minor of incidents, the chances that you will at some point have to pay out money after an accident have dramatically increased. Thus public liability insurance, whilst not legally necessary, is a wise and morally correct move. You need to ensure that you can afford to defend your company in court, that you can afford to pay any damages that may arise and also that you can continue functioning whilst a court case may be ongoing.

People will always chase money, and you need to make sure you have the protection your company needs and deserves.