You may be wondering, “Do I need public liability insurance ?” If you have a business that receives customers, chances are that you are in need of a policy. However, the necessity depends on your situation and what kind of work you do.
Business Types that Need Public Liability Coverage
Individuals who are self-employed and provide goods or services to members of the public or to other businesses are not typically required by law to hold a public liability insurance policy. You should still put some serious thought into obtaining one, though. Your business could still be liable to pay a great deal in the event that someone brings a successful claim against your business or you personally. If you are self-employed, you are your business. If you employ workers, it is a lawful requirement that you hold employer’s liability insurance. This type of policy provides coverage for employees who are injured in the process of carrying out their work obligations or simply in your place of work. Understand, though, that employer’s liability insurance does not provide coverage to your customers or other members of the public. You must have public liability insurance to cover those individuals.
Event insurance typically provides for public liability coverage automatically. Event organisers have many things that run the risk of going wrong. This includes but is not restricted to situations such as damage to equipment, cancellation of the event, bad weather problems, technical difficulties, and problems during travel. These are in addition to the coverage typically offered by public liability insurance. Tradesmen have an even higher investment in their work than many other fields of work. The demands of their work are physical and high. They work with equipment and technology that has great hazards. Many accidents happen in this kind of work, as well. Individuals or businesses that work with plumbing or electrics, plaster work or work on roofs, or building of any sort are advised to obtain public liability insurance coverage to protect other and themselves.
What Happens Without Public Liability Coverage
The law says that individuals or businesses must pay for losses that are caused by that business or any people who work for it. If you do not have public liability coverage, your business will end up having to eat the entire cost of any claims that the court awards. Your business – or you as an individual, if you are self-employed – will have to pay the award. This is nothing to shrug off. The awards that courts compensate the injured or wronged with are not insignificant. They can amount to great sums. There are also the legal expenses to think about, as you will have to pay these whether you win or lose the case. A public liability insurance policy can help to pay all of these costs. If you are self-employed or simply
have a small business, you might end up having to sell your home, including contents, or have your business liquidated completely to provide for those costs.
What Happens When a Claim is Made Against You
If someone injures themself on your property, it is highly likely that he or she will get in contact with a solicitor to file a claim so that they will be reimbursed for costs associated with their injuries as well as losses that they experienced as a result of their injuries. If you do not have public liability insurance coverage, you will have to defend yourself. You will be notified by the court of the claim that has been filed. You will then have to hire a solicitor yourself, who will collect the evidence on your behalf and figure out how to defend you. All of this will be costing you money, in the meantime. If you decide to contest the claim made against you, you will have to attend a court hearing. This means that you will have to pay court fees, as well. If you do not win, you will have to pay any compensation that the claimant was awarded by the court, their medical costs, as well as the legal expenses of everyone involved. If you win, you could recover some of your legal expenses from the claimant, but these are rarely completely recuperated
However, if you do have public liability coverage, you will have peace of mind. Just as with homeowner’s insurance, many of the costs are paid for you. This means that you and your business could very well come through with little or no damage at all. When the person who was injured files a claim, you only need to send the claim documentation to your public liability insurance provider. You can keep your business going and might even be able to keep your customer. You will need to give your insurance provider as well as their own solicitors with the information that they need regarding the case. All of the legal expenses and situations are taken in hand by the insurance provider – and if you happen to lose your case, your insurance provider will pay the compensation amount that is awarded as well as the legal expenses that have been incurred. If you win, however, the insurance provider will recuperate all of the money that they had to spend from the claimant.
Public liability insurance exists as a source of protection for business owners against members of the public who make claims and customers who are injured. More and more clients are asking for proof of this insurance when they are deciding who to elect to work with them. This makes public liability coverage not just insurance, but also a matter of getting business that might have been passed to another company otherwise.