By Deepak Soni, Head of Direct Commercial at Hiscox

What is public liability?

Public liability is the duty any business has to ensure that members of the public are at no harm – whether in the form of bodily injury or damage to their property – as a result of your business activities. This could include damage you accidentally cause to a third party, such as spilling a cup of coffee over a computer at a client’s office.

Public liability insurance protects your business against legal costs, and/or compensation payments you might have to make as a result of injury, or property damage caused by you or one of your employees.

What does public liability insurance cover?

• It will cover your businesses if you have to pay compensation because a client or a member of the public is injured in your premises, or elsewhere.
• It will cover your businesses if you have to pay compensation because you or an employee causes accidental property damage to a third party.
• It will cover your business for any legal fees incurred when defending a claim.

Who needs it?

If as a business you have contact with the public, either at a client’s office, your own premises, or even a trade fair you might need public liability insurance. Despite precautions, accidents sometimes happen and compensation claims against your business can be costly. This type of cover can offer you peace of mind should the worst happen.

Is it mandatory?

This type of cover is not mandatory by statute (unlike employer’s liability which is mandatory in some circumstances) but is often a contractual requirement. This means that you may be required by your clients or suppliers to hold public liability cover.

For more information visit : www.hiscox.co.uk/