How to Choose The Best Public Liability Insurance
Factors to consider when selecting Public Liability Insurance for your business
Taking out the right Public Liability Insurance is super important for keeping your business safe from claims related to injuries or property damage to third parties. There are so many options out there that it can feel a bit overwhelming! But don’t worry, taking out the right one just means looking at a few important things.
1. Get to Know What Public Liability Insurance Includes
Knowing exactly what you’re protected against is crucial before selecting a policy. Although the purpose of public liability insurance is to protect your company from third-party claims, not all policies provide the same level of coverage.
The following are typical coverages of a well-structured policy, such as the one provided by Westminster Insurance Ltd.:
- Injuries to your customers or the public, related to your business activities
- Damage to someone else's property.
- It also covers defence costs tied to those claims, which is super important since legal fees can really pile up fast
2. Look at Your Business's Risks Profile
Before you select your cover, it’s smart to consider how likely and serious Public Liability claims could be in your field. Some industries, such as events, or beauty therapy, tend to have higher risks and might require a little extra protection. Think about how many clients you chat with, the type of work you handle each day, and the workplace you operate in. There are a bunch of factors that can affect what level of public liability insurance is best for you.
3. Figure Out the Best Coverage For You
Consider asking, “How much coverage do I think I should have to cover any potential claims against me?”
- Standard limits usually fall between £1 million and £10 million—look at what fits your needs and what your clients are looking for.
- Some clients or contracts might require a minimum cover limit to work with you.
4. Get to Know What’s Covered and What’s Not
Make sure you thoroughly check out what’s included in the policy. Typically, it covers matters like accidental injuries to other people, damage to their property, and the legal costs if you need to defend a claim. Some policies also cover issues that come up during subcontracted work and even claims of defamation. It’s also essential to understand what isn’t included. Typically, policies won’t cover things like injuries to your own employees, claims tied to cyber incidents, or claims coming from incorrect advice which is covered by Professional Indemnity Insurance.
Take the time to look at the exclusions so you don’t end up with a nasty surprise down the line:
- Injuries that happen to employees (typically covered by employer’s liability)
- Claims that come from cyberattacks or abuse (Use Cyber Liability Insurance)
- Limits on territory and specific restrictions on certain activities such as sunbeds
- Claims from incorrect advice that led to loss or harm (Professional Indemnity Insurance)
- Intentional harm
5. Check Out The Premiums (But Remember, It's Not All About the Lowest Cost)
Businesses owners often jump straight to looking at the premium (cost of the policy), but just focusing on the price can be a bit of a misstep. A lower premium might mean you get less coverage, higher excess fees, or important exclusions that could leave your business vulnerable when you really need it.
So what really affects your premium?
- Business Turnover: Bigger businesses or those making more money usually deal with higher premiums since they're seen as having more exposure or more interactions with the public--each of which could potentially lead to a claim
- How Risky is Your Service? The service your business offers truly influences your risk profile (e.g. a beauty therapist using chemicals or hot tools might deal with different risks compared to a freelance graphic designer.)
- Your Claims History: Insurers will check if your business has a history of previous claims. If you have a clean claims history, you may qualify more easily for coverage. But if you make a lot of claims or they end up being costly, you could see higher rates or even be denied coverage.
- Size of Your Team The amount of people on your policy that actually provide the service that you are seeking insurance for will be considered in the premium price.
- Cover Level You can choose cover from £1 million all the way up to £10 Million. The more cover you require the higher the premium will be.
6. Check the details for the legal and claims process
Understanding the major characteristics and conditions of your policy is important, especially when it comes to legal matters, the claims process, and any changes you might want to make down the line. Just a few things to remember:
- The Governing Law and Jurisdiction: Legal issues and the claims process can get complicated, especially if things don’t go as expected. Most policies follow the rules of the country where the business is based. This decides how disputes are managed, and which legal system is in play.
- "Notify Claims: The policy is based on "claims made", meaning claims are covered when the claim is made during the active cover period. If a claim appears after the expiration of your policy—even if the incident occurred while you were covered—it will not be covered unless you have a current run-off extension in place.
- Instalments, Cancellations, and Cooling-Off Periods: Spend some time looking over the specifics on cancellations, the cooling-off period, and what to expect should you want to stop making payments or cancel midway through the policy. Knowing these specifics will benefit you later when you change your coverage or file a claim. So, it is wise to know them from the beginning.
Choosing the right public liability insurance isn’t just a box to check—it’s super important for keeping your business safe, your reputation intact, and helping you feel confident in what you do.
When you know what’s included, compare similar policies, and think about your own risks, you’ll be in a great spot to choose a policy that really fits what you need.
The cover from Westminster Insurance Ltd., as shown in our combined policy, gives you more than just financial protection. We’re here to help with everything from defence costs and subcontractor liability to reputation management and legal support. Our aim is to provide you with practical, all-around coverage that’s by your side when you need it the most!
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The information provided in this article is accurate to the best of our knowledge at the time of publication. This content is intended for general informational purposes only and does not constitute professional advice, endorsement, or recommendation of any particular course, treatment, service, or product. Readers should always seek appropriate professional advice and check the latest policy documents and terms before making any decisions or commitments.
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