Public liability insurance isn’t a legal requirement; nonetheless, if you don’t take out a policy, the consequences you could face as a result may be disastrous to your business.
Any business, especially a business that comes into contact with the public on a regular basis, should have a sound public liability insurance policy.
The purpose of public liability insurance is to protect you if a member of the public is injured during a visit to your business premises, or if a member of the public is injured by your company as you carry out your work. Having a policy will help you to pay for any legal or medical bills that come as a result of these injuries. Similarly, if you inadvertently damage any third-party property that you have borrowed to carry out your work, public liability insurance will help to cover the repair costs of this equipment or go towards paying for a replacement, if necessary.
If you aren’t covered
If a claim is filed against your business, you will be notified by the courts. If this does happen, you will be obliged to hire a solicitor, who will then begin to collect evidence on your behalf and create a defence case.
If you do not have public liability insurance, and the claimant wins, you will be responsible for paying any costs associated with their injuries. You will also be liable to pay all the court fees, as well as legal costs and medical expenses to all the parties involved with the case.
It is possible to reclaim your losses if the claim is not successful, but you may not be able to claim them all back. In very rare cases, you may also be able to reclaim some of your expenses back from the claimant.
If you are covered
If you do have public liability insurance, the process will be much simpler. If a claim is made against you, just contact your insurer, who will handle the rest. You won’t even need to suspend your business activities during this process and you will be able to go on conducting business, as usual.
You will be required to provide any and all relevant information to your insurance provider, and your solicitor, which will help to outline the circumstances surrounding the claim.
Your public liability insurance policy will cover a range of fees, such as court fees, medical expenses and compensation. Consequently, you will not suffer very much, financially.
If the claim turns out to be unsuccessful, the insurer will also seek to recover all expenditure created by the claimant.
Visit Cuuver.com today to compare public liability insurance policies from some of the UK’s leading insurance providers.
This should not be construed as advice and is for guidance only.