If you own a business, public liability insurance is indeed a necessary step. It will deliver protection to you you and your business against any future allegation for accidental damage caused to your property or to a particular person while on your premises or as a result of your business actions.
How does it work?
This is easily explained through a case study. Picture yourself owning a small shop in your town center, one of your employees starts using the vacuum cleaner and the cable of the vacuum machine is running along the floor of your shop. A customers arrives and stumbles over the wire and breaks their leg. If a situation like this does occur, the injured customer does have the right to file a complaint to the shop, because the incident was caused as a result of your business actions and failure to protect customers.
However, if you decided to take out public liability insurance, any fees related to legal fees, such as compensation payments, medical costs related to the claim will be paid by the insurance company, if the shop didn’t have public liability insurance the shop would have to pay all the costs and this can add up to a lot and can become very costly for a business.
Who needs this insurance?
For a place of business that has supplies or customers coming, even if the business is run at home public liability insurance is a must. However, if your company works at customers premises, you will be liable for damages or injuries that can emerge from the work place. Having a public liability insurance policy in place inst a requirement, but some professionals will need to have one in place before they start trading.
Essentially, when you run a business such as a shop or a pub and if something goes wrong with say the plumbing or some work that requires someone coming over to your premises to fix the problem. Then you need to take out public liability insurance because this will cover you if something does happen and someone puts a claim through
A common rule is, you need to carry out a risk analysis to decide what risks are there when taking out public liability insurance. Some businesses such as those in chemicals or factories will need to decide to take out a high level of insurance because an accident can happen anytime and an accident occurring in these types of premises can be fatal. However a business such as a convenience store in the town center might need to consider if any accidents might occur and decide to get a low level of public liability insurance.
However on the other hand, if you work from home and customers don’t visit you or don’t visit regularly then you might consider getting public liability insurance cover which is a lower level type of cover.