What is Public Liability Insurance?
- Public and Products Liability – cover for your legal liability for injury or for the loss of or damage to property not owned by you or in your custody or control should you injure a third party or damage their property arising out of the supply of goods or whilst undertaking your business activities.
Why do I need Public Liability Insurance?
- Public liability insurance is designed to cover businesses or individuals in the event that they are sued by a third party who feels that they have suffered a loss as a result of that company’s negligence.
- In this instance the company could be taken to court and sued for thousands of pounds. Even if it is established that the company did not act negligently and subsequently no damages are awarded against them they could still have a large legal bill to pay.
- Public liability insurance is designed so that in the event that you are successfully pursued by a third party you will have the adequate financial backing to pay the cost of the claim. If you do not have public liability insurance and a third party successfully pursues you for compensation you will be liable to pay the full amount to the claimant.
- Public liability insurance will not prevent claims from happening; it will however cover your business in the event that there is one. All Public Liability policies will carry a deductible (or excess), which can start at around £100 and go to many multiples of this depending on the size/risk profile of your business.
- If you employ anyone then under the Employers Liability (Compulsory Insurance) Act you must take out Employers Liability cover (which cannot be purchased on its own, it would come on the back of Public Liability Insurance) – there is (at present) no legal requirement for you to have Public Liability Insurance but it is advisable. Employers’ Liability will provide protection against your legal liabilities for bodily injury to your employees up to the limit of indemnity including costs and expenses.
Examples of when PLI cover would cover you
- All examples are given for guidance only – obviously each insurer will have certain exclusions or restrictions, which should be checked with your current insurance adviser or company.
- Whilst carrying your equipment from your vehicle into the venue, you drop it on a Third Party’s foot causing pain and suffering, a Public Liability policy would cover any claim (subject to the policy excess).
- During the performance some equipment falls on the floor causing damage to the property, a Public Liability policy would cover any claim (subject to the policy excess).