Public and Employers Liability Insurance

Public liability insurance covers your business if a member of the public claims against you for damage or harm that was caused due to your business activities. 

This is an important protection if you interact with visitors, clients or customers in person as part of your business. It is popular with salons, studios, companies that run events, or tradesmen working on client sites.

Examples where public liability insurance could help include:

• If a customer slips on a wet floor in your shop and hurts themselves. 
• If your equipment damages a client’s property during a job.
• If a member of the public trips over a cable you are using at a conference.

Employers’ liability insurance is a legal requirement under UK law if your business has employees of any kind. It protects against claims from employees where they’ve suffered an injury or illness as a result of their work. 

If you risk going without employers’ liability insurance, you can be fined up to £2,500 for each day you go without it. 

Examples where employers liability insurance could help include:

• If an employee develops a strain or injury from using work equipment.
• If a staff member injures their back after lifting heavy items without proper training.
• If an employee suffers injuries when working off-site at events or call-outs. 

The exact coverage can vary depending on your insurer and policy. But even standard public liability insurance policies typically cover:

• Legal fees in the case that someone takes legal action against your business.
• Compensation payments if claims for injuries or property damage are won.
• Medical expenses related to a public injury claim.

Employers’ liability insurance usually covers:

• Compensation payouts for employees who suffer illness or injury because of their work.
• Legal costs involved in defending a claim made by an employee.
• Other expenses related to the claim, including medical expenses and lost wages.

Insurers look at several factors that indicate the risk of insuring your business. These can all influence the cost of your combined public and employers’ liability insurance and include:

• The size of your business – including your turnover and the number of employees, customers and clients your business typically has. 
• Industry-specific risks –  Working in a high-risk industry like construction may result in higher premiums.
• Your business insurance claim history – If you have a history of claims this can show your business is a high risk, increasing premiums.
• Coverage limits – Choosing additional coverage options and higher coverage limits usually result in higher premiums.

• Improve workplace safety – Demonstrating a commitment to health and safety for staff and the public can help reduce your premiums.
• Choose the appropriate cover – Choosing the coverage levels your business really needs can help you not overspend unnecessarily. 
• Bundle business insurance coverage – By bundling public liability insurance and employers liability you could save compared to purchasing separately. 
• Shop around before you commit to a policy – Allowing your insurance to auto renew, or buying the first deal you see could cost you. But if you use an online comparison site like Quotezone.co.uk, you get access to quotes from a range of trusted insurers with just one simple form.