You know you need public liability insurance but how do you get cover? Perhaps you're also wondering if you can get cover, and who exactly public liability insurance is for?
Don’t worry, in this post we’ll talk you through everything you need to know about eligibility, the process of getting your public liability insurance in place, and we’ll answer your most common questions.
If you come into contact with the public while running your own business – as a limited company or a sole trader – you are generally eligible for public liability insurance.
This is the primary factor determining eligibility, not the size or type of your business, although these can influence your premium.
Even if you only have occasional interaction with the public, or believe your work is not particularly dangerous, the potential for accidents and subsequent claims is always present. Public liability insurance is designed to address this inherent risk.
Typically, if you are an employee, you do not need to arrange your own public liability insurance. You are usually covered under your employer’s public liability policy or their employers’ liability insurance, depending on the specific circumstances of any incident.
Employers in the UK are legally required to have employers’ liability insurance, but not public liability insurance, although many responsible businesses will hold both.
If you work as an agency worker, it's advisable to clarify your insurance situation with the agency and the end client to ensure you are adequately protected.
Eligibility isn't determined by business size; rather, it's primarily based on whether your business activities involve public contact. So, whether you're a sole trader just starting out or a small limited company, public liability insurance is a relevant and important consideration.
Even businesses with limited public interaction should consider public liability insurance. "Limited contact" doesn't eliminate risk.
If you have any contact with the public, even infrequently, the possibility of accidents or injuries exists. It’s about mitigating potential financial risk, regardless of the frequency of public interaction.
It's a common misconception that only "dangerous" professions need public liability insurance.
Accidents can happen in even the seemingly safest environments and workplaces. A customer might slip in your shop, trip on your premises, or you could inadvertently cause damage or injury even with equipment you consider safe.
Preparing for these ‘unlikely’ events is a prudent business practice.
Public liability insurance is very often worth the investment. Even seemingly minor incidents can lead to substantial financial claims running into thousands of pounds.
For example, accidentally damaging a client’s laptop could result in claims for the cost of replacement, data loss, and business interruption.
Similarly, if someone trips and breaks a leg on your premises, the claim could include significant amounts for lost wages, medical expenses, and ongoing care.
More serious claims can escalate to hundreds of thousands of pounds, potentially jeopardising your business and personal finances if you are uninsured.
Remember, insurance also typically covers associated legal fees, providing a comprehensive safety net.
Now that you understand who can get public liability insurance and why it’s important, let's look at how to get your cover in place.
Obtaining public liability insurance is generally a straightforward and quick process. While there are a few key pieces of information you'll need to gather beforehand, the application and purchase process is typically efficient.
While specific requirements can vary slightly between insurers, there's a set of standard information you’ll generally need to provide. Being prepared with this information will streamline the quote and purchase process.
This normally includes:
- The level of cover you require: Insurers usually offer a range of cover levels, between £1 million and £10 million. If you are uncertain about the appropriate level for your business, resources and guidance are available to help you decide.
- Details about your business: You’ll need to specify your business structure (e.g., sole trader, limited company) and how long you have been operating.
- Annual turnover: You may be asked for your annual turnover. Ideally, having figures available for the last three years is helpful, although not always mandatory.
- Claims history: You will likely be asked whether you have made any insurance claims in the past.
- Trade and geographical area: You’ll need to specify your trade or profession and the geographical areas in which you primarily operate.
- Additional cover options: Consider if you require any additional coverages beyond standard public liability. This might include extensions for situations involving heavy plant equipment or product liability insurance.
Selecting a reputable and reliable insurer is crucial. Here are some essential checks to carry out before choosing a provider:
- FCA regulation: Verify that the insurance company is regulated by the Financial Conduct Authority (FCA). Reputable insurers will typically display their FCA registration details prominently on their website.
- Customer reviews: Check for independent customer review platforms, such as Feefo or Trustpilot, and take the time to read reviews to gauge the experiences of other customers and the level of service you might expect.
- Operating history and industry specialisation: Consider how long the insurance company has been operating and whether they have specific experience in your industry or sector.
o Some insurers specialise in particular niches, like tradespeople, construction, or specific professions. An insurer with relevant experience is more likely to understand your specific needs and risks.
- Support options: Does the insurer offer both online quote facilities and telephone support? While online quotes are convenient, the ability to speak to a knowledgeable advisor on the phone can be invaluable, especially if you have complex questions or require clarification.
Once you've selected an insurer, the next steps are straightforward:
- Online quote and purchase: Visit the insurer's website and use their "Get a Quote" function. This typically involves completing an online form with the information you’ve prepared. Upon completion, you’ll receive a quote and the option to purchase the policy online.
- Speak to an advisor: Alternatively, if you prefer, contact the insurer directly by phone to speak to an advisor. They can guide you through the process, answer your questions, and help you arrange your cover.
Public liability insurance is a critical protection for your business, but obtaining it doesn't need to be a complicated or time-consuming task.
By gathering the necessary information and choosing a reputable insurer, you can quickly and easily put this essential cover in place.
If you require any further assistance or have more specific questions, do not hesitate to seek help from an insurance specialist.