Make sure you have the right insurance cover!

Author - Andrew Long

Business Insurance – that’s like Public Liability and that isn’t it?

Public liability insurance is an essential cover for most types of business – but there is far more to it than that. For all types of business – from a sole trader to a major global organisation, it's especially important for your customers to be sure that your business has the right cover.

What is public liability insurance?

This type of insurance would cover a business if a customer or member of the public was to suffer a loss or injury as a result of its business activities and if that person made a claim for compensation. The Liability insurance company would meet any compensation payment plus any legal expenses.

Why is public liability insurance a good thing for customers?

Above all else, it demonstrates that you as a business owner take your responsibilities and obligations seriously. Even when a business does everything right there is always the chance of an accident happening. With the right insurance cover, a business can operate knowing that should the worst happen, their customers' property could be repaired, their possessions replaced and their medical costs paid for.

What is covered in a public liability claim?

The Policies are usually tailored to the individual business however as a guide, the insurance covers a business's legal liability to pay damages to members of the public for death and injury or damage to property or possessions, which has resulted from the business's activities.

A good example would be if you hired a roofing company to re-tile your roof but they didn't use adequate weather protection, resulting in severe water damage, you could make a claim against them for compensation to pay for repairing the damage. Public Liability Insurance ensures that the company can meet the cost of the claim, along with any legal expenses.

Make sure the business you hire has public liability insurance

Any business that has visitors to its premises or involves work on client sites needs public liability insurance. If you allow tradesmen or professional contractors on to your business premises, you should always insist on seeing a copy of their insurance schedule and documentation before taking them on.

What is the best way of sourcing suitable cover?

The UK has an army of trained and experienced insurance professionals working within your community. It is always worthwhile speaking to a local broker to help you determine what insurance is essential and what level of cover would best suit your specific needs. A broker can also point out the main terms and conditions and warranties that apply – easy to overlook if you simply arrange cover at the click of a mouse.

So I have my Public Liability Insurance – what next?

Public Liability Insurance is a core cover which every business should have, but in addition, if you employ any staff (whether this is on a casual or permanent basis), then you must maintain Employer’s Liability insurance by law.

For many businesses, it is possible to include a range of covers within one package policy – eg a Shopkeeper could have cover to include loss or damage to stock, fixtures and fittings, loss of profits, money, goods in transit, and often commercial legal expenses cover too. This is often a very cost effective way of arranging this cover, and it affords the business owner added peace of mind.

Andrew Long Cert CII  (Commercial Account Executive)

Cass Stephens Insurance Ltd (June 2013)