The Value of a Public Liability Insurance

3rd June 2010

Let us first get the definition for Public

Liability Insurance; it is an insurance which protects you from loss or damage

resulting from a claim for damages by a third party arising from any negligence

on your part, as a business person/company. This is part of the law which

focuses on civil wrongs. If your business calls for members of the public or

customers to come to your premises or you need to go to them, it is always

vital to consider this type of insurance policy.

Practically every business should have this

insurance cover tailored to meet the specific risks and requirements according

to the type of business you handle.


does a Public Liability Insurance Cover?

It is vital for every business because it

will pay out in case a mistake is made which causes injury to a member of the

public or a customer, or even damages their property. One such common incident

is when a customer slips or trips over at your business premises and damage is

caused – it can result in an insurance claim.

Another common example; if a spill on a

shop floor isn’t marked adequately and clearly with a warning sign and a

customer slips and gets injured they can claim for compensation. In a business

premises there can be a great number of similar situations and a Public

Liability Insurance will always cover this cost.

This is a highly recommended cover for all

businesses which can reduce your financial risks significantly.

If your business involves construction work,

you can be very sure that the main contractor will insist for a valid insurance

cover because of the level of risks involved. Given below are some examples as

to when an insurance cover of this type becomes valid and useful. These

examples will help you to understand the requirement of buying such an

insurance cover:



  • If you are an Alarm Installer: If

    you are installing an alarm system at a property and whist securing the

    cables you accidentally hit a nail into a pipe and cause a considerable

    amount of damage. This could be claimed through a Public Liability


  • If you are a Bricklayer: Whilst

    building a brick wall you can accidentally drop some heavy materials and

    damage your customer’s driveway.

  •  If you are a

    Carpenter: If you were fixing a door, it can accidentally drop and

    cause damage to your customer’s property.

  • If yours is a Television Company: You

    will be required to fix outside antennas – most often than not this

    happens on the roof of the building. If by accident you drop something and

    damage your customer’s roof and cause considerable damage.

  • If you are a Bathroom Installer:

    During the course of your work, you may accidentally damage a pipe which

    can cause a leak which might flood your customer’s property and cause a

    significant amount of damage

Situations such as these can be claimed

from a Public Liability Insurance cover. The value of such an insurance cover

is beyond measure as it gives you immense peace of mind in the event of any

loss or damage to your customer or their property.