What is the difference between public liability and employers liability insurance?

Public liability insurance covers claims from members of the public — customers, visitors, or third parties — who are injured or whose property is damaged as a result of your business activities. Employers liability insurance covers claims from your employees who are injured or become ill as a result of their work. Employers liability is a legal requirement if you employ any staff; public liability is not legally required but is strongly advisable for most businesses.

What level of public liability cover do I need?

Most businesses arrange £1 million, £2 million, or £5 million of public liability cover. The appropriate level depends on the size of your business, the nature of your activities, and any requirements imposed by clients or landlords. Some contracts and commercial leases specify minimum levels of cover. A specialist broker can advise on the right level for your circumstances.

Does public liability insurance cover product liability claims?

Product liability is often included within a public liability policy or available as an extension. It covers claims arising from goods you have manufactured, supplied, or sold that cause injury or property damage. If you sell or supply physical products, you should ensure that your policy includes product liability cover.

Is public liability insurance required for home-based businesses?

Public liability insurance is not a legal requirement for home-based businesses, but it is advisable if clients or customers visit your home, or if you carry out work at clients' premises. Your home insurance policy is unlikely to cover business-related liability claims, so a separate public liability policy may be necessary.

How quickly does a public liability claim need to be notified to the insurer?

Most policies require you to notify your insurer as soon as reasonably practicable after an incident that may give rise to a claim. You should not admit liability or make any payment to the claimant without the insurer's agreement. If you arranged your insurance through a broker, contact them first — they can guide you through the notification process.

Public Liability Insurance Guide for UK Businesses

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