Everything You NEED To Know About Liability Insurance:

Public liability insurance protects your business against compensation claims and their legal costs if you cause injury (including death) to a third party or damage to their property. Public liability insurance covers you on your premises and working off-site. It can cover legal costs defending claims and pay compensation if your business is found to be at fault.

What does public liability cover?

Compensation claims

For injuries to a third party or damage to their property, whether an incident takes place on your business premises, a customer’s premises or elsewhere.

Legal expenses

Should a claim be made against you, cover will be provided to help you cover the cost of any legal proceedings.

Cost of repairs

The cost of repairing damage (for example, to a client’s carpets if you are a plumber and do something in the course of your work which causes a flood).

Medical fees

The cost of hospital treatment (including the cost of calling out an ambulance), if the NHS chooses to claim against you.

Unlike employers’ liability insurance, public liability insurance is not a legal requirement. However, it is considered an essential among business owners, and in some professions, you may find it impossible to trade without it.

It’s even possible you could be pursued by the NHS to cover the cost of medical treatment received by the individual who was hurt. All in all, you could face a bill for many thousands of pounds - potentially enough to put a small firm out of business.