Public liability insurance is a cover you take for your business to protect you against claims from members of the public. The claims can be as a result of property damage or injury. The insurance covers you against such claims, while it also meets the legal costs.
Public Liability Insurance Cost
Public liability insurance price mostly depends on the business type one is operating. The size of the business, level of risk one’s history of claims and the industry in which the business is operating. However, most of the public insurance liabilities cost start from £60 annually and £7 monthly. However, the price of public liability insurance depends on the following.
Compare Public Liability Insurance Quotes
Comparing public liability insurance quotes will help you get a cheaper quote and one that best suits the need of your business. You can visit various public liability insurance providers, or you can make use of online comparison sites. Money Supermarket will help you compare quotes so that you can land on the best deal.
Public Liability Insurance Coverage
The following are insured under the public liability insurance.
- Compensation claims. The cover protects you against claims by third parties due to damages to their property.
- Legal costs. The cover meets the litigation costs in case a third party takes you to court.
- Repair costs. The cover will help you to meet the cost of repairing damages caused to other parties’ properties.
- Medical fees. In case of an accident by a third party while inside your business premises, the insurance will help you to pay for the hospital bill.
Considerations to Make When Buying Public Liability Insurance
When buying public liability insurance, you need to provide accurate information. Some insurers will not cover limited companies or sole traders. Other considerations that insurers look at include; the number of staff you have employed, the amount of stock in hold and if the business deals with the members of the public. Finally, make sure that you are covered for the right thing.
You can always ask the customer service to provide you with details and documents they require for you to sign up for public liability insurance.
Is Public Liability Insurance Mandatory?
Public liability insurance is not mandatory in the UK. However, it is important to ensure that you are covered against claims and legal costs that would accrue to your business if it is taken to court.
Why Buy Public Liability Insurance
Any business is susceptible to some level of risk and accidents can happen at any time. As such, it is best that you protect your business against financial claims that may accrue. In other instances, some clients will only work with your business if only it has public liability insurance. It also gives your customers some level of security, knowing that they are protected in case of an accident.
Public liability insurance covers a wide range of businesses and professions, ranging from restaurants, painters, plumbing, etc.
How is Public Insurance Liability Calculated?
Just like any other insurance, insurers calculate the amount of premiums based on chances of making a claim and the cost of the claim. Therefore, for businesses that may be considered risky, the premiums are likely to be higher. Businesses with less likelihood of making claims will pay fewer premiums.
Conclusions
You need to know that public liability insurance does not cover you as the business owner. It covers the third parties who visit your business premises. If you want a broader coverage, then consider some special coverage insurance like self-employed public liability insurance, personal liability insurance, or builders’ public liability insurance.