Do I Need Public Liability Insurance?

18/06/2013 -- Mary Simpson
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Although not compulsory – unless you own a horse riding establishment – you should consider taking out public liability insurance because it provides financial protection for your business against claims for:

  • personal injuries
  • damage to property
  • death

As a self employed person, business owner,  sole trader, company director or employee you could potentially be sued for injury to a third party, i.e., a member of the public, or damage to property.

Compensation awards can be for significant sums of money, plus there can be expensive legal defence costs awarded against you or not covered if actions fail.

For sole traders this could mean having to sell your house and contents, and for limited companies liquidation and loss of business assets and goodwill.

Do I need public liability insurance if I work from home?

If you run a business from your home, and customers or members of the public visit you there for work purposes, then you should consider taking out public liability insurance.

Similarly if you occasionally go to customers’ premises to work, you should think about taking out cover.

Public liability insurance is also recommended if you organise activities and events that are attended by members of the public.

It makes sense to protect your personal and business assets, your clients’ interests and yourself from the almost inevitable hassle of legal disputes.

Public liability insurance doesn’t cover injury to employees, temporary or casual staff – for this you need employers’ liability insurance.