Public Liability Insurance
Public Liability Insurance for businesses, sole traders, self-employed, market traders, stall holders, tradesmen, plumbers, builders, carpenters, electricians, technicians, scaffolders, groundworkers, shops, restaurants, cafes, hairdressers, IT contractors, photographers and events including one day public events. If your business has dealings s with the general public you need public liability insurance.
If you have any business that comes into contact with the general public like a shop serving customers or a restaurant serving food or you’re a tradesmen like a carpenter or plumber working in people’s homes or you’re a photographer taking photos at events or you organise events to which the general public can take part then your need public liability insurance as it’s insurance to compensate clients and members of the public from injury or damage to their property that might be caused by your business.
For example if you’re a wedding photographer and in the classic comedy style you tell the bride and groom to ‘move back a bit’ and the bride and groom fall down some steps behind them the wedding party might sue you or claim against you for injury to themselves, a ruined wedding and damage to their wedding outfits, public liability insurance would pay out in the event of such a claim as your business has caused damage or injury to your client or a member of the public.
Public Liability Insurance Insures Everyone Else Other Than Your Own Employees
Public liability insurance insures everyone else other than your own employees for which you would need Employers Liability Insurance.
Another example of the need for public liability insurance would be a restaurant, cafe, takeaway or food truck (Catering Van Insurance), the food you sell might cause members of the general public to have food poisoning or to react badly to food you have prepared, if your customers are ill or need time off work they might want to claim against you for both lost income as they can’t work whist recovering as well as medical costs for hospital treatment or pharmacy bills, public liability insurance would pay out for any claims of compensation against you.
If you’re an electrician working in a client’s home you might install a light switch wrongly, that light switch might electrocute your client or any other member of the public who happens to touch the faulty light switch, the client or the client’s family could take you to court for injury or even death if your customer died from electrocution.
Legal Cover Pays Any Costs That You Would Incur When You Hire Solicitors
With employee liability insurance, you can also choose legal cover which would pay any costs that you would incur when you hire solicitors or need to prepare documents for the courts to defend your case.
With liability insurance for events you want to protect yourself (your company) from any claims of accident or injury at the event, for example if you are holding a school fate and inviting members of the public into the school, or onto the school playing field for a sports day then you have a liability to those members of the public, should a tent post fall down on the school playing field and injure someone then they or their insurance company if they have medical insurance might claim against the school for injury and damages due, because the injured person can’t work whilst recuperating and may be claiming for loss of income, your liability insurance would pay out against any claims against you.
Tradesmen (Tradesman Insurance) like plumbers, builders and electricians are working in people’s homes all the time, the job they do might lead to claims of compensation for example a scaffolder or roofer on your roof might accidently drop something and it hit a member of the family in the house your working on, this could be an older person or a young child, either way the family will be very unhappy and want to take you to court for injury to a member of their family.
Public Liability Insurance Is Not Product Liability Insurance
Public liability insurance is not product liability insurance, if you make a product that goes wrong for example a mobile phone that overheats and causes injury to your customers then that’s not public liability but product liability where the product causes death or injury because it is faulty.
Personal indemnity insurance is also different, this is where your personal (non-commercial) actions cause someone else to be injured or causes damage to property for example you might be playing sports and accidentally kick one of the other players in the leg, this might break their leg and they or their medical insurance would want to claim compensation against you for their treatment, as an additional example imagine you are playing cricket and the cricket ball you have hit smashes a nearby car window, that would be a claim against your personal indemnity insurance.
In the same way Professional Indemnity Insurance insures you against claims in your professional life for example you are an architect and you design a building which falls down, the owner of the building and anyone injured by the falling building could make a claim against your professional indemnity insurance which holds you harmless (indemnifies you) for claims against you.
Market Traders On A Market Stall
Market traders on a market stall and tradesmen like plumbers, kitchen fitters, bathroom fitters, painters and electricians are often sole traders or self-employed people, they may not employ any other people at all other than themselves yet they will still need public liability insurance because their actions in the course of their business(Business Insurance) might cause accident, injury, death or damage to property, for example a builder that knocks out a wall in your home without realising it is a load bearing wall and causes the house to collapse, the homeowner would sue the builder and the builder would be able to claim on liability insurance.
One day pubic events insurance provides public liability insurance for a single day, for example your street decides to hold a street party, you apply to the council to close the road for the day which the council does but you still need liability insurance to protect the residents and any members of the public who attend the street party, a car could drive through the street party injuring families and children and it is the one day public liability insurance that everyone injured would be claiming against.
Without public liability insurance, you would be personally liable for any claims against you, for example a hairdresser who does not have public liability insurance could face claims for burned skin or damaged hair if a perm or hair dyeing goes wrong, customers who are unhappy with the work that you have provided for them with will often want to sue you for compensation, and it’s the public liability insurance that the public and your clients can claim against.
IT Contractor Insurance
An IT contractor for example might install computer equipment incorrectly this could be an electrical fault that leads to electrocution it could be something as simple as a heavy computer printer unbalanced on the edge of a desk falling off the desk and injuring someone, it would be public liability insurance that the injured party would claim against.
If you have a business either as a limited company or as a self-employed person or sole trader or partnership you can be sued by the members of the public that you come into contact with, ladders can fall on their heads, wet paint can mark their clothes, tools left on the floor can injure them when they trip, floors can become unsafe and give way after building work, any way you can think of for a member of the public or your customer has to injure themselves you will be protected against, without public liability insurance you will be personally liable for their claims.
With public liability insurance typically offering ten million pounds of insurance cover that is a lot of cover that your customers and the public can claim against, if ten million pounds is too much or too little you can adjust the figure up or down, the more public liability insurance you have the higher the monthly premium costs so only take out the insurance cover that you need, for example if you do not regularly meet members of the public or you’re not a tradesmen then the level of cover can be reduced, after all a photographers need for public liability insurance is less than a builders need for public liability insurance as one business carries more risk of injury than the other.
What Is PLI Insurance?
PLI insurance is Public Liability Insurance, this is insurance to protect companies, sole traders and self-employed people from claims made against them by their customers and members of the pubic, the claim might be for personal injury or death or damage to property, an example would be a painter who drops a pot of paint onto the head of a member of the public whilst they are walking underneath the painters ladder, the member of the public would want to claim for replacement clothes and medical treatment required to remove the paint form their eyes as well as any days off work recovering.
What Is Tradesmen Insurance?
Tradesmen insurance is the package of insurance you buy to protect tradesmen like plumbers, electricians, builders, painters, gardeners and more from any injury, accidents or property damage that their business might cause, this is typically insured against by taking out public liability insurance.
If a member of the public is killed for example you organise a running race and one of the runners has a heart attack and dies whilst running, the runners family might sue the organisers of the event saying that there was insufficient water available or that the route was particularly arduous or indeed any other reason and it would be the event organisers public liability insurance that would allow the victim or the victim’s family to claim compensation against the event organisers, without such insurance the event organisers would be personally liable for any money awarded in court due to the resulting claim.
Your property may be damaged by a tradesman or indeed any other business, for example a door to door salesmen knocks at your door and when you open the door the salesmen accidentally drops his case on your tiled floor causes your times to crack, it would be the salesmen’s public liability insurance that you would be claiming on for the replacement of your floor tiles.
If You Run A Business That Has Any Contact With Members Of The Public
If you run a business that has any contact with members of the public then that contact is wholly unpredictable, anything could happen when you meet the public, you might be working in their home and lean back in your chair whilst producing a quote for the client, the chair breaks and the householder wants you to pay for a new chair, it is your public liability insurance that the client could claim off as you (the business) broke the customers chair even if it was accidental.
Directors insurance is different from public liability cover in that directors insurance is a form of professional indemnity insurance in that the directors actions may cause decisions to be made that later cause death or serious injury or loss of money or life, for example a director may advise the changing of a company’s pension fund, later that change might be found to be detrimental to the pension fund and now all the employees have lost their pension, it would be the directors insurance, the professional indemnity insurance that the employees would be claiming against to recover the pension money.
If you’re a groundworker then you can get special groundworkers insurance which insures you for public liability, for example you are using a digger to dig a trench and the digger cuts through a power cable plunging the neighbourhood into darkness, a local business might want to sue you for loss of business as now their nightshift cannot operate, it is the groundworkers public liability insurance that the company would be claiming against.
Insuring Against The Cost Of Compensation
With public liability insurance, you are insuring against the cost of compensation, say for example that you run a car workshop and one of the gas welding bottles explodes killing a member of the public walking past your workshop and a member of your own staff, it is the public liability insurance that the family of the passer-by would claim against and the employee’s liability insurance that the family of your own worker would claim against.