What is Public Liability Insurance

18/06/2013 -- Mary Simpson
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As a business owner or employer, you have a legal duty towards the public to protect them from injury or wrongful acts done either deliberately or as a result of negligence by the business or its employees.

If a member of the public is injured or there is damage to property as a direct result of your business activities then you could be held legally responsible and risk a lawsuit.

If a group of people or number of properties suffers because of your actions, the bill could run into millions of pounds.

What is public liability insurance?

Public liability insurance covers you against claims made against you or your business by members of the general public. It is designed to meet your legal liability to pay damages for death, injury or damage to property, and the subsequent legal costs if the business is found to be at fault.

Public liability insurance covers the business (defendant) for unintentional damage or injury (tort acts) caused to others, for example, if you run a corner shop and a customer slips on a wet floor and you haven't put up a sign to warn them of the risks.

In today's litigious society, the customer's first port of call will often be a "no-win, no-fee" solicitor.

The resulting claim against your business could be very costly for a defendant to reply to and defend in court.

Every year thousands of businesses go bankrupt because they do not have public liability insurance cover - around £5 billion is paid out annually.

With cover starting from as little as £60, why take the risk?

Public liability insurance will cover the insured (you) against insured risks.