Public liability insurance

Public liability insurance isn’t a legal requirement for businesses. However, the costs in the event of a claim can be extensive and damaging. You may also find that clients or organisations you work with require you to have public liability insurance in place.

Check to see if your clients require you to require you to have a certain amount of public and product liability insurance coverage in place. This can help to guide you.

If not, consider your worst-case scenario and the likely costs involved with not only defending the allegation but also the compensation you would have to pay to put your mistake right.

If an employee was responsible for accidentally injuring a member of the public or damaging their property during the course of their work, public liability insurance could protect your business against claims that may be brought against you.

But public liability does not cover you if an employee makes a claim against you. In this case, you would need employers’ liability insurance.

Yes, public liability insurance is tax deductible as it is deemed an ‘allowable expense’. This means that you can deduct the cost of your premium when calculating your taxable profit.

Public liability covers you for personal injury and property damage claims made by members of the public. Employers’ liability, on the other hand, protects you against claims brought against you by your employees.

General liability is a broad term that is usually used in the United States. It is used to describe commercial insurance policies that protect against injury, illness and property damage. In the UK, the terms ‘public liability insurance’ or ‘product liability insurance’ tends to be used instead.

Professional indemnity insurance (PI) and public liability insurance (PL) are different types of business insurance that cover compensation claims. Professional indemnity insurance cover claims made by clients for professional negligence or mistakes, whereas public liability insurance covers claims made by members of the public for injury or damage. Read more on professional indemnity insurance vs public liability.

Public liability cover offers financial protection to charities if someone files a claim for injury or property damage against them. If a charity is found to be negligent, this covers the costs of compensation and legal fees.

You can find out more about why public liability insurance is important for charities here.

If any aspect of your job involves hosting people – whether that’s in your home, an office building or at a shared workplace - business public liability insurance is an important consideration. That way you’re covered if the worst should happen, and it demonstrates that you’re serious about maintaining a positive professional relationship. Speak to us about public liability insurance for individuals, and other relevant cover such as tradesman insurance, liability insurance for cleaners and builders public liability insurance.

Public liability insurance policies can vary a lot so public liability insurance policy wordings tend to be very comprehensive. Before going ahead with buying your insurance, it’s worth checking the details to ensure that the policy meets your requirements. You can read the policy wording by downloading the policy document just above on the right under ‘Policy Documents’. You’ll be able to see what exactly is covered, limits of cover and compensation and any policy exclusions.

As mentioned above, if you’re purchasing public liability because you’re required to have it as part of a contract, double check the contract to ensure that the level of cover you’re purchasing meets the level of cover your client has specified.

If public liability insurance isn’t required by a client, but you’re purchasing it to protect your business, think of a worst case scenario and how much that would cost. By doing this, it will help you to judge the level of cover you may need.

If you have any questions about what our public liability insurance covers, please don’t hesitate to get in touch.

Markel Direct is regulated by the Financial Conduct Authority and Prudential Regulation Authority. If you’d like to find out more, you can visit the Financial Services Register.