What is public liability insurance? (2024)

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Is your profession not listed? When you run a quote you can select your trade from over 1,000 options.

What does public liability insurance cover?

Public liability insurance can cover legal costs and compensation payments if your business is held responsible for injury or property damage to a client, contractor or another member of the public.

Imagine you’re a consultant visiting a client’s office and you spill a cup of coffee and damage their computer equipment. Or imagine an employee in your cleaning company fails to put out a wet floor sign after cleaning a floor and someone slips and breaks a bone.

In both cases, your business could be sued. Your public liability insurance could then cover the legal fees and compensation costs, up to the limit of your policy.

Do I need public liability insurance?

It’s up to you to decide whether you need public liability insurance (it’s not a legal requirement), but it may be helpful to know that it’s usually taken out by businesses that interact with the general public.

This means public liability insurance is usually bought by tradesmen, hairdressers, shop owners and restaurant owners, for example. But since most businesses come into contact with the public at some point, it’s a good idea for many businesses.

How much public liability insurance do I need?

It’s up to you to decide how much public liability insurance you need, although it’s sensible to check with your potential clients to see if they expect a particular level of cover.

Simply Business offers a minimum of £1 million and a maximum of £10 million of public liability insurance.

How much does public liability insurance cost?

As with other types of insurance, the cost of your public liability insurance will depend on a number of factors, including the type of business you run and the level of cover you select.

Businesses that are perceived as riskier will usually pay a higher price for their public liability insurance.

The quickest way to get a price for your insurance is to run an online quote.

Does public liability insurance cover employees?

Public liability insurance isn’t designed to cover employees - it’s an insurance intended to protect you from third party claims made by a customer, client, or another member of the public.

If your business has one or more employees, you’re usually legally required to take out an employers’ liability insurance policy. This can cover you for compensation claims made by an employee because they suffer injury, illness or property damage as a result of their work.

You can buy both public liability insurance and employers’ liability insurance as part of a tailored insurance policy from Simply Business. Get a quote now.

What is occupiers' liability insurance?

Under UK law, the occupier of a premises is responsible for ensuring it’s safe and that it doesn’t cause harm to visitors. The occupier isn’t necessarily the owner. For example, a hairdresser is responsible for making sure that their salon is safe, whether it’s rented or owned. As a result, the occupier is liable if something happens to a visitor, and it’s the occupier who could face a compensation claim. Public liability insurance provides cover for this risk.

Can I get public liability insurance with a criminal record?

It can be difficult to get public liability insurance if you have a criminal record, and you may need to use a broker to help you find a policy. Simply Business can’t offer you a policy online if you have a criminal record, but we can sometimes help you over the phone. Three of the insurers on our panel may be able to offer you a public liability policy, as long as you only have one conviction and it didn’t result in a custodial sentence.

What is the difference between public liability and general liability?

Public liability insurance and general liability insurance are different terms for the same thing. Public liability insurance is the UK name for business insurance that covers third party injury or damage claims, while in the USA this insurance cover is called general liability insurance.

If you have employees, you will usually be required by law to have employers’ liability insurance to cover injury claims made by employees.

What is public liability insurance? (2024)

FAQs

What is the meaning of public liabilities? ›

a situation in which a member of the public is hurt or damage is caused to their property by a company's actions or products: If you were sued, your house insurance should cover you for public liability.

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What is public liability insurance called in the US? ›

Public liability protection falls under commercial general liability insurance. Often bundled with business property insurance, it is also included in a package called business owner's policy (BOP).

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What is the difference between liability and public liability insurance? ›

Public liability serves as a foundation, safeguarding against claims from the public specifically on your business premises. General liability builds upon this foundation, offering a more extensive shield against a wider range of potential legal and financial risks.

What is an example of a liability insurance? ›

For example, one may have liability insurance for one's car, meaning that if he/she gets into an automobile accident and injures someone, the liability insurance will compensate the injured person.

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What is my public liability? ›

Public Liability relates to a member of the public being injured or having their property damaged resulting from, or relating to, your work. For example, a customer visiting your premise, tripping on a wet floor, and injuring themself.

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What is the meaning of public insurance? ›

A program run by U.S. federal, state, or local governments in which people have some or all of their health care costs paid for by the government. The two main types of public health insurance are Medicare and Medicaid.

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What type of insurance should you choose? ›

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have. Employer coverage is often the best option, but if that is unavailable, obtain quotes from several providers as many provide discounts if you purchase more than one type of coverage.

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Why would a business purchase liability insurance? ›

General liability insurance is often one of the first policies that small business owners buy. It covers third-party lawsuits (those coming from people outside of your company), including slip-and-fall accidents, product liability, property damage to third parties, and reputational damages.

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What are the legal liabilities of a business? ›

Legal liability describes a situation in which a small business is held legally responsible for injuring or financially harming another party, This judgment can result in fines, penalties, or other payments.

What does liability insurance protect you against? ›

Liability insurance coverage protects you financially if you're responsible for someone else's injuries or property damage. Liability coverage comes standard with most vehicle and property insurance policies, including auto and homeowners insurance.

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What is a liability and give two examples? ›

Liabilities are any debts your company has, whether it's bank loans, mortgages, unpaid bills, IOUs, or any other sum of money that you owe someone else. If you've promised to pay someone a sum of money in the future and haven't paid them yet, that's a liability.

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What category is liability insurance? ›

Risk Management Expenses

This expense category is typically used for all types of insurance, such as property insurance, health insurance, and liability insurance.

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What are liabilities and examples? ›

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What does it mean when people are liabilities? ›

If you say that someone or something is a liability, you mean that they cause a lot of problems or embarrassment. As the president's prestige continues to fall, they're beginning to consider him a liability.

What is the difference between public liability and public product liability? ›

The difference is that Public Liability relates to injury or property damage whilst you're on the job, and Products Liability relates to injury or damage caused by any products you distribute, supply or manufacture.

Is public liability an expense? ›

Yes – most business insurance policies are classed as a tax-deductible expense. For example, professional indemnity insurance and public liability insurance are considered 'allowable expenses'. This means the cost of these policies can be deducted when you calculate your taxable profits each year.

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