There is only one mandatory insurance for businesses in the UK and that is Employers Liability Insurance, but there is a range of other insurances that any serious business should consider.

Amongst them, Public Liability Insurance is one of the most significant. This insurance provides protection for your business in the event that your business activities result in the injury or death of a member of the public or causes damage to their property.

Whilst the likelihood of such an accident occurring might seem remote, any interaction with a client or member of the public could result in injury to their person or property.

A member of the public might visit your office and slip on a wet floor or trip on a step. You might accidently spill a cup of coffee over your client’s laptop during a meeting.

If your business involves working on site or in other people’s homes, the risks are clearly much greater. A passing member of the public might be injured by a dropped tool, or a vehicle damaged by a falling ladder. Even though you exercise the utmost care, accidents can and do happen.

What is covered?

Public Liability Insurance covers you for incidents that occur on your premises and activities and events organised. It will cover compensation costs to the victim as well as the damage costs, legal fees, expenses and recoverable NHS costs. It does not cover employees or interns because they are already covered by Employers Liability Insurance.

Who should take out Public Liability Insurance?

Public Liability Insurance is an insurance that can be taken out by businesses of any size, from market stall to listed company. It is a particularly important insurance for the self-employed who are often in direct contact with the public and therefore are particularly vulnerable.

Hairdressers, photographers, plumbers and electricians are all involved in work that could cause injury or damage.

How much does it cost?

The cost of the insurance depends on the size of the business and the level of risk. Some businesses are clearly a much higher risk than others and generally, manual businesses are a higher risk than clerical. The cost of the insurance however is tax deductible because it is treated as a business cost.

What are the additional benefits of taking out Public Liability Insurance?

Perhaps the greatest additional benefit of taking out the insurance is the peace of mind that it offers and since it is tax deductible this comes at no additional cost to the business.

Local government or council contracts usually ask whether you have Public Liability Insurance with a minimum cover of £5 million before they’ll do business with you. Some business trade organisations will also require that your business has the insurance in place.

The insurance certainly helps improve the level of trust between your business and clients and collaborators and is an important element in securing the reputation of your business as responsible and trustworthy.