What does public liability insurance cover?
While it might differ slightly from policy to policy, public liability insurance will usually cover:
Compensation payments you're ordered to pay. This could include compensation claims from clients, suppliers, contractors or passers-by.
Replacement or repair of property if your business is found to be liable for damage. You'll usually have a set amount you can claim for.
Medical fees your business is found liable for. Even if the treatment was provided by the NHS, you could still be chased by the NHS itself for any expenses you're liable for.
Legal expenses as a result of defending a claim for compensation from members of the public, including claims made by customers and suppliers.
There are a few things that typically aren’t covered, however. These are usually:
Injuries you suffer as public liability is designed to cover claims for injury to others and their property, not you and yours.
Damage to your property as it’s designed to cover third parties and their property, public liability insurance won’t protect your own property.
Your employees and their property, as you'll need employers’ liability insurance if you want cover to protect against compensation claims made by your employees.
Damages as a result of your work, eg. from poor advice you gave, or due to negligence on your part. For this, you'll need professional indemnity insurance.
Types of business insurance
provides protection for your business from financial losses.
Professional indemnity insurance
If your business gives professional advice to clients, then PI covers you in case your clients claim a service is inadequate.
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