Your business is liable for the safety of the general public on your premises, whether they’re customers in your shop or restaurant, clients whose home you are working on, visiting your office for a meeting or simply passing by.
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Claims your business was responsible for physical or financial harm can leave you picking up the bill. A typical Public Liability Insurance policy includes cover for:
- Injury to any person
- Loss or damage to material property
- Obstruction, trespass, nuisance or interference
- Wrongful arrest, detention, imprisonment or eviction
Public Liability (PL) insurance, or Third Party (TP) Liability insurance, protects organisations against their legal liability for death or injury to third parties or for loss or damage to third party property.
Legal liabilities are usually incurred following perceived incidents of negligence, nuisance, trespass, defamation or strict liability.
Policy wordings vary significantly in the market, but generally will cover any sums the policyholder become liable to pay as damages and claimants costs and expenses arising out of circumstances outlined in your policy document.
Limits of Indemnity
In cases of serious injury, damages awarded to the injured party can run into many millions of pounds, compensating the injured party for their pain and suffering, ongoing costs of care, medical attention and loss of earnings.
If the event or incident causing the injury also affected other people as well, it is easy to see that insurers could face enormous compensation bills arising from a single error. Therefore, insurers impose a series of indemnity limits. Limits will vary for general claims, pollution claims, costs and risk sharing.
Like most insurance policies, war risks, radioactive contamination and terrorism are usually excluded. You may also find exclusions for the use of vehicles, such as forklift trucks, tractors, lorries, boats and aircraft – which require separate insurance – as well as circumstances such as gradual pollution and contractual liability.
For an increased premium, you can also arrange cover for additional risks including court attendance compensation, overseas personal liability, cross liabilities and more.
You must comply with policy terms to make a successful claim. You have a duty to take reasonable precautions to prevent injury or damage occurring. If any feature of the risk changes, you must notify your insurer.
Most premiums will be calculated based on your premises risk and work away risk.