15 Sep Answering your Questions Public Liability Insurance

Here we answer some of the most frequently asked questions about public liability insurance. Let us know if you have any other queries that aren’t answered below.

What is public liability insurance?

Public liability insurance (PLI) is an insurance product for businesses. Whether you are a sole trader, an SME or a large corporation, it is probably in your best interests to have public liability cover in place.

What does public liability insurance cover?

PLI protects your business from claims made by clients, customers or members of the public. If your business is sued for compensation, whether that’s a personal injury claim or damage to a customer’s property, PLI will cover the costs associated with the legal action and any compensation payout. Without it, you face having to pay for a claim out your business funds, or even out of your own pocket.

Should I have public liability insurance?

While it’s not a legal requirement for business owners to have public liability cover, it could well end up being a false economy not to have it if a customer makes a claim against you.

If your trade means that you interact with the public in any way, for example as a retailer, an electrician or a plumber, then public liability insurance will cover you against the cost of claims made against you.

Also, in some situations, such as for subcontractors, your client may insist you have public liability cover before they will hire or do business with you.

How much public liability cover do I need?

Most standard public liability insurance products provide cover up to £1,000,000, but you can increase the amount if your chances of being sued are high, or if the type of business you undertake carries a high risk, such as hairdressers and cleaning companies. Some contractors may ask you for a specific amount of cover depending on the type of work you are undertaking for them.

Many trades have an industry-standard figure for PLI, so it’s well worth investigating before shopping around for your business insurance package.

What happens if I don’t have public liability insurance?

As we have said, there is no legal requirement to have public liability insurance, but the risk of damage to your business can be high if someone sues you.

Firstly, you will need to pay for a solicitor to represent you in the claim. If the person suing you is successful then you will have to pay their compensation – this could be hundreds of thousands of pounds if they have suffered life-changing injuries as result of an accident that was your fault. And finally, you may have to pay a large proportion of the legal fees and costs associated with the claim.

A substantial claim could you put out of business unless you have public liability insurance.

What’s not included in public liability insurance?

As the name suggests, this insurance covers you for claims made by the public. It does not provide insurance cover for claims made by your employees, so, if you have any employees (apart from certain family-run businesses and sole traders) you are legally required to purchase employers’ liability insurance separately or as part of a business insurance package.

Public liability insurance also doesn’t cover any injury you might suffer while working for yourself or damage to your property, such as your business premises or tools and machinery – your general business insurance should cover these aspects of your business.

How do my customers know I’ve got public liability cover in place?

If you wish to reassure people visiting your business that you have PLI, you can display your public liability insurance certificate – just ask your insurer and they should be able to send you a display copy or a digital copy which you can add to your website.

Some contractors will need you to provide evidence of your public liability cover and the amount of cover you have if they’re taking you on as a subcontractor. Find out more on our page “The Tradesman and The Subcontractor – A Question of Liability” where we explain in more detail about how to prove your level of insurance cover.

Where can I get quality public liability insurance?

Get the all the business insurance cover you need with Tredstone.

We are friendly, efficient and effective and can make sure you get the right cover for your needs.

Get a quote with Tredstone Risks today.