A guide to Public and Employers Liability Insurance

Public liability insurance safeguards against someone make a claim against the business, covering any legal fees and expenses.

The amount of cover a business obtains is numerous. The decision is down to the individual company. Cover ranges from £1 million to £5 million.

Liability claims can often run into thousands of pounds, and with so many 'no win no fee' services on offer, the purchase will have never been more relevant.

Public liability will cover such claims as; a member of the public being accidentally injured by a business operation or the person carrying it out. For example, someone could trip over the ladder left on the floor.

It will also cover damage to third party property. Example, an ornament could be pushed off a shelf and shattered while on a job.

Employers Liability Insurance protects against claims brought on the business by an employees that are injured or made ill while working for the company.

Regardless of the business size or turnover, it must acquire employers' liability insurance. Full time, part time and temporary workers, subcontractors and trainees are classed as employees.

A company is required to have at least £5 million of cover. If caught trading without it, while employing workers, the company will be fined up to £2,500 for every day that it has done so.

Not only will employers liability insurance will cover the cost of claims awarded to employees as well as legal expenses.

Example of a claim would be a worker in a shop slipping on water spilt on the floor which results in some injury.

Another example would be a builder being made terminally ill from asbestos poisoning.

Anyone can purchase both public liability and employers' liability insurance.

Organisations that would benefit from public liability would be:

• Shops,


• Restaurants,


• Hotels,


• Builders,


• Electricians,


• Plumbing,


• Carpenters,


• Scaffolders,


• Painters and Decorators,


• Bricklayers,


• Ground Workers,


• Gas Fitters,


• Demolition.

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