We all try to be safety conscious in the workplace, but inevitably, accidents do happen, which could result in pricey compensation claims. That’s where public liability insurance comes in. It could help protect you if someone makes an injury claim against you or your business.
To help you decide if public liability is right for you, here are 6 indicators that your business could be at risk – and how public liability insurance could benefit you.
1. Your premises are open to the public
Whether it’s slipping in your shop, tripping over a fallen piece of stock or cutting themselves on a sharp edge, when your business is open to the public, you’re open to accidents happening in your workplace too. Public liability insurance protects against the compensation costs linked to members of the public (whether customers, clients or passers-by) accidentally injuring themselves in your business.
2. You work in other people’s properties
Public liability insurance covers your business against the costs of legal action and compensation claims if a third party is injured or their property is damaged accidentally while at your place of business or when you’re carrying out work at their home or place of work.
Accidental damage, such as knocking over a vase when using cleaning equipment, would be covered. This is especially handy for tradesmen, cleaners or gardeners, who often do their work on-site at client properties.
3. You use special tools or processes
Everyday tools might be safe in trained hands, but an accident can have serious consequences. Whether it’s accidentally dropping a hammer on a client’s floor or a minor burn when straightening a client’s hair, small accidents could result in big damage claims or even legal action. Public liability insurance protects you against compensation costs and ensures your legal costs are covered too.
4. Your products could hurt someone
Although you work hard to make your products as safe as possible, it’s sensible to consider the risk of injury if the fruits of your labour end up in the wrong hands or accidentally harm others. Public liability insurance could protect you should a minor slip up or accident result in a member of the public making a claim against your business. For example, if you’re a café owner whose customer inadvertently gets food poisoning from one of your dishes, public liability insurance can shield your business against compensation payments and legal costs.
5. You’re employing staff
If you’re employing staff, you should already have employers’ liability insurance – which is a legal requirement. But it’s worth remembering that you’re not just responsible for the safety of your staff, you’re responsible for their actions too. If someone you’re employing accidentally causes injury or damages the property of a member of the public, it’s your business that could face the compensation claims.
6. Your business is growing
Although public liability insurance isn’t a legal requirement, larger clients and professional bodies like the UK Government sometimes expect you to have it. This is often the case for tradespeople working on-site for clients, and when you’re contracted by local government bodies like councils – hardly surprising when the average settlement on a damages claim is £13,500.
If you need advice on which type of insurance is right for your business then call us today 0141 778 5311 for some advice.