Can public liability insurance cover all of the expenses of a legal case?

November 28, 2018 11:49 am

Possessing public liability insurance is vital to ensuring that your business isn’t financially burdened in the case of any potential legal claims from third parties such as homeowners or the general public. However, what does your public liability policy actually cover? Are you insured for the full legal battle as well as any damages that are awarded? What’s not covered?

This article will give you the lowdown on all things public liability insurance and help you to set the record straight in the face of court cases and compensation claims against your business.

What does PLI cover?

It’s always a good idea to understand exactly what your public liability policy covers so that, in the event of legal action, you are prepared for what’s in store. Public liability insurance will cover your business against the full expenses of the legal case as well as any damages that are awarded against you in the courts.

According to a recent statistic from Law Donut, the Health & Safety Executive delivers over 1,000 successful prosecutions against businesses each year for various public disputes related to health and safety.

Public liability insurance will cover you against any legal action taken by third parties in relation to your company. When we refer to third parties, we are simply referring to anyone who is not an employee of yours. This includes members of the general public.

It also includes workers from other businesses who may work on your site with you. However, their employer liability should cover them for any injuries that could incur.   

Your public liability insurance will cover you against medical bills through the NHS and ambulance transportation services that are required in the event of an injury.

What does PLI not cover?

Public liability insurance does not cover any harm, injury or illnesses that occur to you or your employees. If you’re looking for a valid insurance policy to protect yourself and your employees, then taking out an employer liability or business policy is the correct step to pursue for your business.

What’s the difference between public liability insurance and employer liability insurance?

It’s always handy to know the difference between the two vital insurance policies that your business will need to ensure that you are fit for trade and don’t run into any unnecessary financial problems. The public liability policy protects you against any claims made by the public, who are legally known as third parties against your business.

If claims are made, the insurance can cover your full legal expenses in court as well as any other ramifications that do occur. Employer liability insurance, meanwhile, protects yourself and employees against workplace injury and costs that can arise on the back of this.

Different levels of insurance cover

The two different areas of insurance cover that we mentioned above carry varying levels of stringency that depend on the nature of the work that you complete. A small sole trader, for example, won’t require the same cover as a contractor working on council-ran construction projects with a large workforce. You could save yourself time by speaking to a insurance broker capable of helping you to find the best public liability insurance policy for you and your business.

%d bloggers like this: