Unlike employers' liability, which is compulsory, public liability insurance is optional for most businesses. Rather than covering you for compensation claims made against your business by your staff, this covers you for those made by other businesses or members of the public for injuries or damage to their property.
It also covers you for legal costs incurred defending claims made against your business. Your premiums will depend on your type of business, revenues and employees.
Make sure you keep your policy up to date to reflect changes in your business and cover new risks, such as working off-site.
If you're a manufacturer or supplier of goods, there's a risk that one of your products may damage a member of the public or their property. Product liability insurance is also voluntary for most businesses but will cover you in this instance and is really a must for product-based businesses.
Even a small fault can sometimes lead to major claims where the legal costs alone can bring a business to its knees. Again, there are caveats.
This type of insurance is for unforeseen circumstances and your products will have to meet certain quality levels in the first place to make a claim. It won't cover you for making substandard products. Any quality control systems you have in place will help lower your premiums so make sure your insurer knows all about them.
Your policy should protect you from safety claims, manufacturing quality, spoilage and indemnity costs such as medical bills. Liability insurance could save you a small fortune if you find yourself facing a series of claims.
