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Whilst you may have heard about public liability cover, you may not be sure if your business needs it.

We’ve written this blog to help explain more about public liability insurance, but please give us a call at Prizm Solutions so we can provide advice specifically to your bespoke business situation. 

What is public liability insurance? 

Public liability insurance can help to protect a business against damages and losses related to running the business. An active policy will help protect your business against anyone who claims to have suffered loss, damage or injury as a result of dealing with you in a business capacity. 

As well as general public liability insurance, there is also specific public liability insurance for certain sectors, such as retailers, food establishments, landlords, beauty salons, licensed traders and other businesses like manufacturers, mechanics, cleaners, security and those in the construction industry. 

Is public liability insurance required by law?

Contrary to what you might read elsewhere, public liability is compulsory if you own/operate a riding establishment, a nuclear site and/or own or keep dangerous animals.

Even if your business doesn’t involve the three examples previously mentioned, it’s very sensible to purchase public liability insurance, especially if you deal with the general public. 

Similarly, if you’re operating a contract for a large company or public sector organisation, then public liability insurance is often needed before you are even allowed to submit a tender for a project, and proof of the insurance is required before any work can commence. 

Plus, if your business is a member of a trade association, then you may find you need public liability insurance in order to join and remain a member. 

Does your business need Public Liability Insurance?

Possibly. And probably. But if you give Prizm Solutions a call, we’ll be able to let you know exactly what you need, once we understand more about your business. 

Public liability insurance is beneficial, not just for protecting the business, but also for providing protection for the business owners and directors. For example, if a member of the public comes into your shop, trips over a display and gets hurt, you may be liable for damages. Another example could involve a roofing contractor dropping a tile onto a customers’ car (or God forbid, someone’s head). That’s when you need public liability insurance to help with legal and other costs, as, without it, you or your business could end up having to pay for costs like any medical bills associated with the claim.

Does public liability insurance cover employees?

Public liability insurance does not cover injury/illness to employees or any temporary staff, such as students on work placements. Employers’ liability insurance is required to cover staff members. Public liability purely covers a business for compensation claims made by people outside of the organisation, including clients, customers and suppliers. 

How much public liability cover should a business take out?

When a business enquires about public liability insurance, Prizm Solutions can advise the appropriate amount of cover based on what products or services are being provided, and any associated risks. Levels of cover on a policy usually range between £1 million and £10 million, however we recommend a business buys a MINIMUM level of £2 Million indemnity.

What does public liability insurance cost?

There are many factors that an insurance broker will take into consideration when costing up public liability insurance, such as the type and size of business, how long it has been trading, the number of employees and whether it has made any insurance claims previously.  

For a low-risk micro-business, public liability insurance could start as low as £100 per year. A large corporation, however, might pay millions of pounds for a policy. 

To get an individual public liability quote for your business, just contact Prizm Solutions. We’ll have a chat on the phone to find out more about your business, so we can recommend the best policies for you.  There are many other business insurances we can help with, including Professional Indemnity Insurance, Management Liability Insurance, Cyber Insurance and Commercial Vehicle Insurance.