Public Liability vs Employers Liability: What's the Difference?

Public liability insurance is important to help shield businesses from claims from third-party injuries or property damage caused by business activity. This type of insurance covers legal costs and compensation, providing financial protection and peace of mind.

Understanding the public liability insurance claim examples below can help you to recognise the potential risks your business may face. They also underscore the importance and benefits of appropriate insurance.

For a claim to be successful against you there must be some fault/negligence on your behalf. Common public liability insurance claims arise from incidents including:

• Slips and falls on business premises: This kind of accident can occur due to wet floors, uneven surfaces and even poor lighting.

• Third-party property damage caused by business operations: This could be an incident in which a contractor accidentally damages a client's property.

• Accidents involving business products: This type of claim is where a business’s product supplied causes accidental injury or damage. Products liability insurance will be required to cover this.

The risks that businesses face can be quite diverse. For this reason, it’s wise to consider investing in public liability insurance. It can help protect your business from the potential financial and legal ramifications of a wide range of accidents.

• In a busy café, a customer slips on an unmarked wet floor and breaks their wrist. They allege fault on your behalf and initiate a claim for medical expenses and suffering.

• The café owner reports it to their public liability insurer, who will investigate the circumstances and defend your position covering legal costs. If you are found to be at fault the policy will cover the bodily injury awards and medical expenses.

• This coverage protects the café from significant out-of-pocket expenses, allowing it to continue operating without the financial burden of the accident.

During a home renovation, a contractor accidentally damages a client's wall unconnected with the actual works being undertaken. The client initiates a claim for the repair costs.

The contractor reports the incident to their public liability insurer, who assesses the damage and validates the claim. If you are at fault then the insurer compensates the client for the repair costs, ensuring the damage is fixed quickly.

This process protects the contractor from the financial burden. His public liability insurance means that he is covered in the event of such at fault accidents.

A faulty appliance sold by a business catches fire. The fire causes property damage and minor injuries. The affected customer initiates a claim.

The business's products liability insurer investigates the circumstances. Was the product fault causing the accident due to negligence on you part? If yes, then the claim will be handled under your property, alternatively the insurers of the policy will defend you and re direct the claim to the manufacturer or supplier.

This coverage protects the business from significant financial and legal repercussions.

To reduce the likelihood of public liability insurance claims, businesses should have good, strong risk management practices.

Basic safety processes should be in use. Clearly marking wet floors and ensuring adequate lighting can prevent slips and falls. Regular maintenance of premises, including repairing uneven surfaces and maintaining clear walkways, can help to reduce the risk of accidents.

If your business sells products, thorough quality checks are very important. They help to avoid defects that could cause injury or damage. Employee training on safety standards and incident reporting also reduces risk.

The right amount of public liability insurance for you depends on your business type, size, and the typical risks you face. Assess potential hazards, such as customer interactions and product liability to determine appropriate coverage.

Consulting with insurance professionals can be helpful. They can help to tailor your policy to your business’ specific needs.

Public liability insurance can be helpful to your business, as illustrated by these examples of slips, property damage and product faults.

It can safeguard your business from significant financial and reputational damage. It does this by covering things like medical costs, repair expenses and legal fees.

If you’re looking to protect your business from unforeseen accidents, don’t miss our public liability insurance. Get a quote today, either online or by phoning us on 0330 828 1416.