There are many benefits to running a business in the UK, but there are also risks. Accidents can happen no matter what kind of business you run, whether it’s a small café, a self-employed plumber, or a busy events company. A customer could trip over a loose wire, or a product could break something that belongs to someone else. That’s where Public Liability Insurance comes in. It’s a type of Business Insurance that protects you from expensive claims and legal problems.
In this guide, we’ll show you exactly how to pick the best public liability insurance policy so you can protect your business and not have to worry.
- Know What Public Liability Insurance Covers
Before you buy a policy, you need to know what you’re getting for your money. Public liability insurance is meant to protect against:
- Injury to third parties: The policy can pay for damages if a member of the public is hurt because of what your business does.
- Damage to property owned by someone else: If your work accidentally damages someone else’s property or belongings, you’re covered.
- Costs of Legal Action: It can be expensive to defend yourself in court. Public liability insurance pays for court costs and lawyer fees.
For example, let’s say you’re a wedding photographer and you accidentally knock over a valuable vase at the venue. If you didn’t have insurance, you would have to pay for the damage yourself. The insurance company pays for the cost if you have the right policy.
- Find Out What Your Business Needs
Your insurance shouldn’t be the same as anyone else’s because every business is different. Consider:
- The type of work you do – A beauty salon has different risks than a construction company.
- How often do you deal with the public – The more you deal with customers, the more dangerous it is.
- Requirements for the industry – Some trade groups or contracts say you need to have a certain amount of public liability insurance before you can work.
Knowing your own risks will help you choose a policy that meets your needs instead of paying for cover you don’t need.
- Find the Right Level of Cover
The amount of cover you need depends on what kind of work you do and how risky it is.
- Businesses that are less risky, like home-based consultancies, usually don’t need as much cover.
- Businesses that are more dangerous, like tradespeople or event planners, often need more protection.
Tip: Before you start working with a client, local council, or big company, make sure you know what level of cover they require.
- Look at Different Insurance Companies
You might want to go with the cheapest quote you find online, but the lowest price isn’t always the best deal. When you compare insurance companies, you should look at:
- Reviews and reputation – What do other companies think of them?
- Claims process – How quickly and fairly do they settle claims?
- Flexibility – Can you change your coverage as your business grows?
You should get quotes from at least three providers so you can compare the level of coverage as well as the price.
- Look for Other Cover Options
Public liability insurance covers a lot of things, but not everything. You might also need the following things for your business:
- Employers’ liability insurance – Required by law if you have employees.
- Product liability insurance – If you sell or make things.
- Professional indemnity insurance – For people who give advice or work as consultants.
Sometimes, putting these together in a Business Insurance package is cheaper than buying them one at a time.
- Know What Your Policy Does Not Cover
There are limits to every policy. Some common things that aren’t covered are:
- Injuries to workers (which are covered by employers’ liability instead).
- Damage to your own things.
- Work done outside of agreed-upon areas.
Always take the time to read the terms and conditions. You don’t want to think you’re covered only to find out you’re not when it matters most.
- Get Help From a Professional
An insurance company can be a big help if you’re not sure which policy is right for you. They are able to:
- Find policies that are specific to your field.
- Please explain the cover details in simple terms.
- Get you better deals.
Brokers are helpful for businesses that are small or have a lot of risk.
- Last Things to Check Before You Buy
Before you sign, go through this short list:
Does it protect your business from the specific risks it faces?
Is the amount of cover enough for your clients and contracts?
Have you looked at at least three different providers?
Do you get what the exclusions are?
Can it change with your business?
Final Thoughts
Finding the best public liability insurance policy isn’t just about getting the best deal; it’s also about making sure your business is safe. The right insurance can protect you from losing money, getting sued, and hurting your reputation.
Public liability insurance is one of the most important parts of your business insurance plan, whether you work for yourself, as a freelancer, or run a big company. Take the time to look at all of your options, read the fine print, and choose a policy that makes you feel good about running your business.
After all, one of the best things you can do is buy peace of mind.