Public Liability Insurance

Public liability insurance protects companies and individuals against their legal liability to pay damages, resulting from injury or damage to third parties.

For private individuals their personal liability should be catered for under their household insurance policy, and where appropriate the private motor insurance policy.

For businesses and persons acting in the course of their business, the cover must be obtained either as part of a "package" insurance policy, such as shop insurance or commercial combined Insurance or as a stand along liability insurance policy. Practically speaking it is usual for the public liability insurance, product liability insurance and employers liability insurance to be purchased together, although this is not a requirement.

For the purposes of public liability insurance "Third Party" does not include employees, this is the subject of employers liability insurance.

The injury or damage must be caused::

during the normal course of the policyholders business operations and includes the actions of employees
the policyholders ownership or occupation of business premises.

Public Liability Insurance also covers legal and other costs incurred by:

the third party or claimant pursuing the legal action against the company if a court awards them against the company
the company’s/insured’s own costs in defending the legal action.

Liability insurance policies differ from other types of insurance policy insofar as it is a contract of legal liability and does not contain specific sums insured payable in the event of a certain occurrence. Liability Insurance does not offer such specified benefits.

The purpose of the Public Liability Insurance policy is to provide indemnity to the insured for the damages paid in compensation to the injured third party or damage to their property arising out of and in course of their specified business activities. The majority of public liability claims involve compensation for pain and suffering caused to people and property damage.

As such the sum insured under a liability policy is not referred to as such, it is specified as the limit of indemnity. This limit of indemnity represents the maximum amount the insurer will be responsible for in respect of any one occurrence. Common Limits of Indemnity are £1,000,000 £2,000,000, £5,000,000 and £10,000,000 although other limits are available.

Policyholders should make an assessment of the limits they require based upon the type of work they are involved in and their potential exposure to loss, although in reality it is more common for the limits of indemnity selected under a policy to be driven by contractual requirements.

We offer a range of public liability insurance facilities from a range of providers. If you would like to obtain a quotation please follow this link or call us during office hours on 01270 767327.