Is your business liable to public liability
Protecting your business, (especially if it is small) against
public liability is very important. Public liability insurance covers claims made against your business.
Also claims can be made against business owners, directors or employees if they are found to be responsible for personal injuries to a third party or damage to property.
This type of insurance covers any legal costs associated with defending claims against the business. Therefore, premiums will dependon the type of business. Public liability cover can also be extended to include claims arising defective products, or design, this is commonly referred to as product liability insurance.
However, remember that this type of insurance does not cover you if a claim is made against the business for negligent advice. To install this insurance, you will need a separate professional indemnity policy. This is often known as professional liability insurance. Nurses and health professionals normally have this type of cover.
The difference between having public liability insurance and not having it is vast. If a customer does suffer an injury, and therefore makes a complaint, having public liability insurance helps the process to be simple.
If the claim is found against you, the insurance company pays compensation/ damages/legal costs. If the claim is found for you, the insurance company collects legal costs from the plaintiff.
However, if you do not have public liability insurance, then if you lose you pay the compensation/ damages/ legal costs. If you win, you still need to cover the legal costs.
Updated on 6/30/2008