By:  14/12/2009
Keywords: Business Insurance, public liability insurance

If your business deals with clients or members of the public, or if you come into contact with the public in the course of your business activities, Public Liability Insurance should be the top priority insurance cover on your list.

Public Liability Insurance claims are often extremely high, sometimes running into the hundreds of thousands. This means that a business which isn’t covered could be in serious financial trouble if it found itself liable to pay damages or compensation from its own pocket.

The number of firms now offering ‘no win no fee’ claims services means that no business can afford to be without comprehensive business insurance.

Public Liability Insurance can cover your business for damages and compensation payouts along with any related legal fees in the event that your business has caused injury or death to a member of the public or damage to their property.

While it is not a legal requirement to have Public Liability cover, most businesses are expected to have a minimum cover of £2m. Companies operating without it may find it more difficult to do business.

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A contractor drives his cherry picking vehicle into a fellow contractor
After driving his cherry picking vehicle from one site to another, the man who was guiding him through the dark street inadvertently found himself trapped when the vehicle was being parked and it ran over his leg, breaking it in two places.

As a contractor, the driver was required to have his own public liability insurance, and as such the injured party was able to claim damages covering: PSLA (pain, suffering and loss of amenity) of £15,000; Loss of earnings to £8,000; Care to trial of £1,500; Medical expenses of £7,000; Claimant costs of £8,500 and his own costs of £7,000.

A joiner punctures a water pipe and causes extensive damage to a development
A joiner was contracted to install all the joinery in 26 of the flats in a housing development. When the cold water system was tested the piping was found to have been punctured, which caused extensive water damage to some of the flats.

Although not completely aware that he had caused the damage himself, he found himself liable for the damage and had to claim on his insurance for covering the cost of the repair work and his own related costs, amounting to £35,000.

Repairs to shopping centre sprinkler system result in claims from several parties
Two employees from a company contracted to refurbish the sprinkler system at a large shopping centre neglected to cap off the end of part of some pipework, which resulted in a flood once the water was switched back on. Water damage was caused in the centre premises to the stock of several shops.

The sprinkler maintenance company had insurance to a limit of £5m, which more than covered them for the resulting claims of around £25,000.

Keywords: Business Insurance, public liability insurance