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Why Public Liability Insurance is Important


Why is public liability insurance important? Running a company is a risky business and when it comes to your insurance needs you should always consider Murphy’s Law – “What could go wrong will go wrong.” In other words always assume the worst and insure accordingly. If you are not sure exactly what your insurance needs are, it is probably best to employ the services of experts who will ensure you have adequate professional indemnity insurance, employers liability insurance and public liability insurance and will also explain the differences between each type.

Public liability insurance is a must for all businesses that regularly associate with customers or members of the public. If any person should have an accident, injury or incident due to the fault of the business, or on its premises, the person is within their rights to claim for compensations. Public liability insurance meets any payouts and legal costs incurred, as well as any expenses and hospital costs.

Each policy will be built for the particular business in mind but will ensure that damages claimed will be met, if deemed that it was caused by the business or their premises. The premium will be decided by the size of the business and the nature of the business, as some industries are considered to be more risky to the public than others. For example, construction sites are likely to be considered higher risk than a writer inviting someone to his home for an interview. Of course, there are exceptions to every rule – the writer may possess a dangerous Rockweiler for example.

Public liability insurance safeguards your customers and your staff and the business can go about its working day knowing that if a problem does arise, it need not cause the business to go bankrupt. It also offers assurance to customers, who otherwise may not feel comfortable using your business.

Professional indemnity insurance adds another extension on as it offers professionals extra insurance against negligence claims, whereas public liability will only apply to direct injury or damage. Professional indemnity insurance gives protection against legal claims made against the business, such as negligence or misrepresentation. If you are in the service industry, or offer advice, then you should consider professional indemnity insurance as a standard cover requirement.

By law, all businesses that employ one or more staff must have employers liability insurance. It will cover any compensation claims your employees may make against the business if an accident or incident occurs as a result of work for the company. The business can be fined if they do not hold employers liability insurance. Public liability insurance and employers liability insurance are often sold as one policy, which reduces the overall costs.

Even in these difficult economic times, it is important not to cut costs concerning business insurance; it may end up costing you a lot more in the long run if you do so.



My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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