Frequently asked questions
(Explanations in short)

What is Public Liability insurance?

Public Liability insurance covers any awards or damages given to a member of the public because of an injury or damage to their property caused by you or your business.
This policy also covers any related legal fees, costs and expenses, in addition to costs of hospital treatment that the NHS may claim from you.

How can I reduce the cost of my Public Liability insurance?

Your first step to reducing the amount you pay will be lowering the risk you present to the insurers. The safer the working environment and the fewer claims you have made, the lower your risk will be.

How is the cost of my Public & Product liability calculated?

Premiums depend on the type of business you run, your turnover and the number of people you employ. Your premium is also calculated on your exposure to risk and factors such as if you work away from your office premises.

When would I need Public Liability insurance?

If members of the public or customers visit your premises or you go to theirs, Public Liability insurance is strongly advised.

What does Public Liability Insurance Cover?

Public Liability insurance covers any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business.

This policy also covers any related legal fees, costs and expenses, in addition to costs of hospital treatment (including ambulance costs) that the NHS may claim from you.

Is Public Liability Insurance Compulsory?

You do not have a legal requirement to have Public Liability insurance; however, some businesses such as horse riding firms are required by law to have Public Liability cover.

These days, many customers or potential customers require proof of adequate insurance before they will allow you to work for them.

Do I need Public Liability Insurance if I work from home?

If you work from home, and customers or members of the public visit you there, you should also consider having Public Liability insurance.

Do I really need Public Liability Insurance?

If you do not have Public Liability insurance you are be liable to pay the full amount of compensation required to settle any claim. Public Liability claims can amount to huge sums of money.

Public Liability Insurance – Questions and Answers

Our insurance expert answers your questions.
Are you confused by an aspect of Public Liability insurance? Then please send your query to our Q&A section.

Each week we choose questions for our panel of experts to answer – and publish the results on this site. Unfortunately we are unable to answer all the questions we receive or send personal replies.

Does our badminton club need insurance?

"My badminton club meets once a week in the local church hall. The hall has public liability insurance, but our club does not. Do we need this cover? AA"

Expert replies: Public liability insurance covers accidental injury to individuals or damage to the property of others due to a negligent act for which you would be liable in a court of law.
This insurance is specific to the activity or business of the policyholder, so the hall's policy will not cover your club's activities and it would be advisable for your club to take out its own insurance.
Annual premiums start at less than £250 for £2m of cover.

I am starting a mums and toddlers group with largish equipment. I am worried I may need public liability insurance, so can you offer any advice? As the mums will be staying with the children, would I still be liable?

Expert replies:  You definitely should obtain public liability insurance to protect yourself in case you are sued by either third parties coming on to the premises (such as tradesman or the parents of the children) who are injured.

You make mention of largish equipment. If this equipment fails and results in an injury, you may be able to pass on the claim to the supplier or manufacturer.

However, the playgroup will be included in the action. The public liability insurance will therefore also include an element of legal protection to defend such action.

Society is becoming increasingly litigious. If there is an injury, such an injury could result in a claim made against you as the organiser of the group.

When looking for cover, first be guided by the local authority. It may have a requirement for the play group to carry Third Party Liability cover for £2m or £5m. Additionally, it will need to establish any specific criteria regarding the safety of the children and the security in and around the play group.

Once you have established this, approach a local insurance broker who will investigate the insurance market on your behalf.