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If you own a business, public liability insurance is indeed a must. It will serve to protect you as well as your business against any claims for accidental damage caused to property or to an individual while at your premises or as a result of your business activities.
So how does it work?
Well, this is actually better explained through an example. Imagine you are the owner of a small shop, and one of your employees plugs in a vacuum cleaner and runs the cable along the floor, and over to the carpet in the corner. A customer walks into the shop, trips over the cable and then breaks their ankle. In this situation, the injured customer would have the rights to file a complaint to the shop since the accidents was caused as a direct result of your business activities and negligence.
However, when the shop owner is equipped with public liability insurance, any legal fees, compensation payments, and medical costs arising from the claim would be covered by the insurance firm. Without this cover, the business would be expected to pay out the entire claim.
Who will need such insurance?
For businesses that
have visited suppliers or clients even if the venture is being run at home, public liability insurance is indeed a must. Apart from that, if your company will work at a customer's property or premises, you will most likewise be liable for damages or injuries that can arise from your work. A public liability policy in place is not a legal requirement; however, some professionals will indeed need to have one in order to trade.
Basically, when you own a shop, office or pub, work in the plumbing trade or any of the other trades which require you to enter a client's premises, you must seriously consider taking out public liability insurance in order to make sure that you are covered in case there is a claim.
As a general rule, you have to consider what the risks are if you are comparing public liability quotes. In general, those ventures which need a higher level of cover are those who occupy premises and have greater number of 3rd party individuals going at their place like theaters, shops and more. Other high risk businesses will include those working with chemicals and powerful machinery or perhaps those who own premises where alcohol is being consumed.