What is it? Public Liability Insurance protects a company when someone is accidentally injured during normal business operations. The injured party can be either an employee or a member of the public. Liability insurance not only covers all medical bills, but also any legal fees or expenses that may be incurred as a result of the injury. It is the most popular type of insurance in the UK.
Who purchases it?
Though most companies have liability insurance, not every company needs it. For example, a small business owner who works out of his home and does not employ a staff would not require insurance. But, if an owner has even one fulltime employee, they must have liability insurance.
What does it cost?
Like any type of insurance, the price depends on the risk and the amount of coverage. A business owner who employees 10 accountants would likely receive a favorable quote, since his staff is small and accounting is not a dangerous profession. But a general contractor with forty employees who work at constructions sites in the city? Well, that would be a different story.
How does it work?
Sticking with our general contractor, let's say that one of his employees falls off a ladder and breaks his leg at work. Clearly this is an accidental, on-the-job injury, and his boss would file an immediate claim with his liability insurance provider. If, however, the boss foolishly decided not to purchase insurance coverage, he would be liable for all the bills.
Why is it necessary when we have the NHS? While it is true that most minor injuries are covered by the National Health Service for free, occasionally patients must see specialists that work in the private market, and that costs money. We recommend a policy that offers at least 1 million pounds of liability coverage.