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Understanding Public Liability Insurance

An insight into Public Liability Insurance

What is Public Liability insurance?

Public Liability insurance provides cover for businesses against claims made by customers or members of the public who have suffered a loss, damage or injury as a result of the business activities. The insurance would cover the cost of the compensation payment and any legal costs.

How much Public Liability insurance do you need?

Although not a legal requirement, having Public Liability insurance is essential for businesses. Not only does it provide protection against claims, but providing evidence of adequate insurance cover will also be a requirement of many customers before work can be undertaken.

Darwinsure provides a minimum cover of £1m with options for higher limits of £2m or £5m.

How can you reduce the risk of a claim?

Good health & safety practices and training are a great place to start as these can help minimise the chance of an accident. Ensure you carry out risk assessments and provide suitable work equipment for the activity.

If you hire another business or contractor to work for you, ensure that you check they have suitable Public Liability insurance in place.

Example of a Public Liability claim

A cleaner mopped a floor in the entrance to a shop and then left to attend another incident whilst the floor was still wet and without a suitable warning sign in place.

A customer came into the shop shortly afterwards, slipped on the wet floor and was injured.

The cleaning company was liable for the resulting claim totalling £15,000 including costs and expenses.

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