The nature of the beast unfortunately means that cheap public liability insurance is not always the best public liability insurance. Of course, it helps to do your research, so you should always read every detail of the terms and conditions in every policy that is available to you before you go ahead and pay for one.
Image courtesy of Frosted Peppercorn
Policies that have similar or even identical prices quite often will not have identical terms and conditions. Indeed, the cheapest policies are cheap for a reason: because they are far less inclusive than all other policies. Every kind of business will need a different kind of public liability insurance to cover its specific requirements.
Public liability insurance is not a legal requirement for businesses, which means that the common trap that people fall into is thinking or, indeed, hoping that nothing will happen to customers or members of the public on their premises. In this case, as in many cases to do with insurance, it is far better and cheaper to be safe than sorry.
The potential costs of having to pay out of your own pocket for a claim that is not covered under an insurance policy are huge. Granted, insurance can be expensive on a monthly or yearly basis, but it will save you hundreds and possibly thousands in the event of a claim being made against your business.
Basically, public liability insurance covers you and your business against any kind of injury or illness that might be sustained on your premises by somebody not involved with your business. Such insurance is essential for a place like a pub, in which people can easily trip, slip or fall over a barstool or a spilt drink. Damage to a person’s property is also covered under most policies. A building firm, for example, would need public liability insurance to cover any potential damage that might accidentally occur to somebody’s house during a job.
It is worth reiterating here that some policies will not include certain cover for your particular type of business. Referring back to the previous example, a builder might regularly work at a height of above 5 or 10 metres, so he or she would need to specify such a requirement for cover in their insurance policy.
Depending on the seriousness of any possible claims, the potential ramifications of not having public liability insurance on your business can be devastating. In particular, if you run a SME, you could be at risk of bankruptcy if somebody files a serious claim against you, so it is not worth the risk. Bite the bullet and get insured.