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What is Public Liability Insurance?

Find out about public liability coverIf you have a business or are just starting out with one and you are looking into the various insurance policies you will need, you might be wondering, “What is public liability insurance?” This variety of insurance is one of the most important you can have, particularly if your business will involve any kind of hazards or you are hiring any employees.

Exactly What is Public Liability Insurance?

Public liability coverage is a type of policy created for businesses and self-employed individuals. It is suitable for businesses of any type and any size. Public liability policies protect you and your business from financial damage via claims filed by customers or other members of the public for damages to their property or injury to their person. These claims are not that uncommon and they can arise whether you go onto someone else’s property to do your work or they come to your home or place of business. If someone else becomes injured or has their property damaged in a situation where you are working, you could very well end up with a claim filed against you.

Coverage for Damages and Injuries

Few people are aware of the contingencies that can occur in a business setting. However, it is necessary to be prepared to field the problems that can come up, such as your liability for the injuries of others or damage to their property. If you are insured for this kind of liability, you can make sure that not only is your business protected, but your financial situation as a whole will not be put into jeopardy because a claim is filed against you. In today’s highly litigious society, public liability insurance has never been more important. This variety of insurance protects you from having to pay compensation out of your own pocket in the event that someone else’s property is damaged or they themselves become injured, whether because of your negligence or a simple accident. A filed claim can mean that you have to pay many thousands of pounds to compensate someone else for these damages or injuries – and if you don’t have an insurance policy to pay for this, chances are that your business will go bankrupt. Public liability insurance also pays for legal expenses and court costs, though, so very little money will come out of your own pocket, if any at all.

Is Public Liability Coverage Necessary Under Law?

While it is not absolutely compulsory to obtain public liability coverage in all situations and you are not usually breaking the law by not having it, this does not make the coverage unnecessary. The extent to which your policy should cover you is decided through many factors – the size of your business, what kind of work you are involved in, how many people are in your employ, and more. It is smart to have plenty of coverage to provide your business with protection against a problem involving a customer, whether they tend to come to your place of business or you visit them on their own property. While this coverage is not legally required, you will discover that some people – customers and suppliers, both – will not work with you if you do not have sufficient public liability coverage.

The Risk Factor of Businesses

Although you might be able to keep your business’ risks down, it is virtually impossible to remove all risk completely. Risk is a factor that you cannot control, where your business is concerned, because you cannot possibly keep other people from having accidents. This makes having a public liability policy quite valuable to you. No matter how much compensation the claimant is rewarded, as long as you have a policy covering you for that amount or more, you and your business can avoid financial ruin.

Public Liability Policy Costs

The price of public liability coverage varies from policy to policy and between businesses that receive the protection. Typically, the insurance provider will consider how big your business is both in consideration to how much work you do and how many people you employ. They will also usually look into claims that have been filed against you in the past. Certain situations can cause your premiums to go up, depending on your past and your safety records. When you purchase public liability insurance, make sure that you read and understand its terms and conditions – if you violate these, you could end up invalidating the policy.

What if I Have a Good Safety Record Already?

If you have a great record where safety is concerned, you might be tempted to forego public liability insurance. However, even if you are as safe as possible when working, this does not count out claims being filed against you. Unexpected accidents still occur, and you can be responsible for these, no matter how unusual the circumstance. You can also end up with a claim filed against you even in situations that were not your fault. When this happens, you still need a solicitor to help you in the event that it goes to court. Your legal expenses will be paid in this kind of situation, as well.