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Blog: October 16, 2019

What is public liability insurance?


If you’re considering taking out public liability insurance, or are simply exploring whether or not your organisation requires this service, it can be difficult to know where to start. We at Arkwright Insurance Brokers are dedicated to supplying our customers impartial information into these types of insurance policies, so you can make the best decision for you, your business and your team.

Person walking over a banana skin, demonstrating public liability insurance

Public liability insurance explained

Public liability insurance is a type of cover which allows you to meet costs incurred if a member of the public has an accident, contracts an illness or disease, or is injured in any way that wasn’t their fault while on your premises. This can also include incidents that haven’t actually occurred in your workspace but as a direct result of it.

This could be a visitor, contractor, passerby, customer or supplier – anyone who has suffered or has had their property damaged as a result of your business. From minor incidents to major accidents, this type of liability insurance acts as a protection against potentially crippling claims issued to your business.

What does public liability insurance cover?

Public liability insurance can cover the cost of legal fees, damages, and other costs that can arise if your business is sued for the above reasons.

For example, if a representative of your businesses were to visit a client and accidentally damaged their files or equipment, or if a supplier were visiting your business location and where to fall due to a wet surface not clearly marked by a wet floor sign, grounds for a case to be filed in court against your business would be established.

Public liability would then cover the costs which would be involved with this process, and as a direct result of being sued for these reasons.

Who needs public liability insurance?

It’s not a legal requirement to acquire public liability insurance – however, it’s important to consider how often these kinds of accidents occur, and just how much it would cost your business if it were to happen to you.

Any business owner should consider taking out public liability cover, especially if their business interacts with the public – or anyone outside of their own team. This type of insurance is usually a flexible agreement, which takes into consideration the size and risk of your business when forming the terms of the cover.

Depending on your industry, clients of your business may also have certain expectations when it comes to the level of cover your business has set up – it’s worth consulting with any such clients before taking out a policy, to gauge their expectations of protection.

Arkwright has access to a number of leading insurance providers and brokers, meaning we’re able to help you form a policy which is suited to your specific needs and budget – for a small price, you’re able to protect yourself from potentially catastrophic costs that could arise at any time.

Click here for information about public liability insurance. We offer a wide range of other insurance products – get in touch with a member of our team to learn more.