What is public liability?
Companies and employers have a duty of care to the people who use their place of work and buy their products. This is the foundation of the health and safety regulations for UK businesses – alongside equal consideration for employees.
Public liability is a company’s responsibility for any injuries or accidents incurred by a member of the public on their premises. Your premises can be a permanent place of work, or at a site the business is temporarily responsible for.
The public can be defined as customers or clients, people attending one-off events, and visiting contractors or other third parties.
When does public liability apply?
Public liability applies when someone suffers injury due to negligence by the business or business owner. In other words, it comes into play when the company breaches its duty of care to the public and can be held responsible for the damage caused.
A simple example of this is a customer slipping on the wet floor of a shop and breaking a bone because the business had failed to clear up a spill or put out proper signage warning of the danger.
Businesses at most risk of a public liability claim being made against them are those who deal daily with the public. This includes:
- Shops
- Restaurants and cafés
- Bars and pubs
- Takeaways
- Beauty salons and hairdressers
Specialist construction workers such as plumbers and electricians can be at risk as well when they visit people at home.
Do I need public liability insurance?
It’s not normally a legal requirement for businesses to have public liability insurance, but if someone decides to look into making a public accident claim against you it could provide useful protection. Solid business insurance can also make you more attractive to companies who want to collaborate.
Public liability insurance is particularly useful for businesses that often organise off-site events, or if the public frequently visits your place of work. It can even be used if you run your business from home and have work-related visitors.
The only situation where public liability insurance is a legal requirement is for horse riding establishments. This is because an escaped or out-of-control horse could cause serious damage to people or property.
What does public liability cover?
Public liability covers the extra costs that might apply if a member of the public makes a compensation claim for on-site injury, illness, and death, or property damage.
These costs could include hiring a solicitor and the fee to settle the claim. Public liability insurance can also help to finance any other court-ordered compensation payments such as property repairs and replacement, medical bills, and the other party’s legal bills.
