PUBLIC LIABILITY INSURANCE FROM UK & IRELAND INSURANCE
If a member of the public or client suffers a loss or is injured as a result of your business activities, your business is likely to face legal proceedings. Any compensation and legal fees can be covered by Public Liability Insurance.
WHAT’S COVERED BY PUBLIC LIABILITY INSURANCE?
Public Liability Insurance covers your legal liability to pay damages to members of the public for death, bodily injury or damage to their property, which occurs as a result of business activities. Public liability insurance cover can also be extended to include claims arising out of defective products or design, often referred to as product liability insurance.
WHO NEEDS PUBLIC LIABILITY INSURANCE?
Anyone who has visitors to their business premises or who visits clients' sites needs Public Liability Insurance. Public Liability Insurance is not a legal requirement but it is good business practice.
The majority of local authorities and businesses will expect your business to be insured up to a minimum of £2m for works to be undertaken at their premises or on their behalf. Without suitable Public Liability Insurance you won’t even be able to compete for the business.
RISKS OF FAILING TO ARRANGE PUBLIC LIABILITY INSURANCE
In recent year’s, Public Liability Insurance claims have become more and more frequent. The emergence of “no win, no fee” claims companies has led to huge increases in legal proceedings against unsuspecting businesses.
- Public Liability Insurance claims can easily run into hundreds of thousands of pounds, if you business does not have insurance you will be liable to pay whatever amount is awarded against you.
- If your company has insufficient funds you could personally be pursued. A court can pursue you for any assets which you have i.e. your home, cars and any other assets which you may own.
There are risks attached to running any business, don’t make the mistake of not having the adequate insurance cover your business. You could lose everything that you’ve worked so hard to achieve. Public Liability Insurance gives you the protection you need when the unforeseen occurs.
PUBLIC LIABILITY INSURANCE CLAIMS EXAMPLES
The following examples highlight the importance of Public Liability Insurance.
CUSTOMER SLIPS ON OIL AND SUES GARAGE
A client enters a garage and slips on some spilt oil, breaking their leg. As the mechanic has not cleaned the oil up or put a sign out warning clients to be cautious, the client pursued the mechanic for compensation and was awarded substantial damages.
ELECTRICAL CONTRACTOR SUED BY HOME OWNER
Whilst rewiring a house an electrical contractor failed to ensure that their work was completed properly. Following a subsequent fire, the courts found the electrical contractor liable and awarded damages to the property owner.