Expert Q&A - Public liability
What do businesses need to know about public liability insurance?
Businesses come in many shapes and sizes, from freelancers to large limited companies. Whatever form your business takes, you will likely need to consider some form of insurance.
Public liability insurance is one of the most common forms of business insurance. We sat down with our in-house expert, Claims Team Manager Lauren Wootten, to answer some big questions about public liability insurance and help you understand all you need to know about this cover.
Whether you're a new business or finding your current insurance provider is struggling to offer the cover you need, earn more about how we help businesses find the right public liability insurance for them.
Why should a business consider buying public liability?
Like many types of business insurance, public liability is not a legal requirement for most businesses in the UK. This can sometimes cause confusion around whether it’s needed or not.
Public liability insurance has a broad scope. It’s designed to cover injury or property damage experienced by a member of the public as a result of your business activity. Because of this, many clients and trade associations often require some level of public liability when you enter into a contract together.
In today's current climate, and with the continuing high price of living, we have seen a flurry of claims from our customers where they’ve received "vexatious allegations” — basically, persistent but unsubstantiated complaints — from a third party.
On occasions these claims have involved solicitors, and without the support of a public liability policy, this can be costly and stressful for a business to deal with.
How has public liability changed in the last few years?
The biggest change we’re seeing in public liability is that there are loads of different insurance providers now offering a wide range of covers at different price points.
This can be confusing for businesses looking to get covered.
With the digital insurance industry thriving, brokers and insurers are making the process of getting a policy much smoother. There's a focus on allowing people to buy the right cover quickly and confidently. This in turn has led to fewer questions, so it's quicker and easier to take out cover than ever before.
When you get your public liability cover, it’s important to make sure you read the fine print, however. If your cover isn’t fit for purpose — it doesn’t cover what you need it to — it could actually cost you more in the long run.
What's the biggest risk of not having public liability insurance?
Claims can come in for unexpected reasons. Without the right cover in place, you may find yourself caught short.
In early 2022, public liability claims only accounted for around 10% of the total claims we received. Public liability claims now make up over 17% of our overall claims, so these kinds of claims are on the increase.
If you’re ever unsure about making a claim, or there is a particular claims scenario you’re concerned about, please reach out to us. We’re always happy to help.
What our expert says
Lauren Wootten, Claims Team Manager
It is a common misconception that if you’re not selling something, then you won’t be subject to a claim. If your day-to-day job involves interacting with the public in any way, public liability cover is an important consideration.
What is the most common question customers ask about public liability?
How can I make sure I’m covered in the event of a claim?
Insurance is ultimately there to help you should you need to make a claim. So it can be frustrating to find yourself in this position only to discover your policy doesn't cover you.
There are some top tips to make sure your insurers can always support you in the event of a claim.
1. Get cover before your start
If you need public liability insurance, a good pointer is to make sure you have a policy in place before you start any work.
Sadly, no public liability policy will cover a pre-existing issue. We've had multiple customers try to submit claims for incidents which took place months before their policy was issued. These claims, unfortunately, aren’t valid.
2. Think carefully about the work you're providing
Public liability cover won't cover the costs of rectifying poor or faulty work — if you’re not sure if you have the skills and experience to do a particular job, don’t be afraid to say ‘no.’
We’ve recently had claims from our builder clients were they tried to bite off more than they could chew. While the damage caused in the process was covered, the cost of fixing the faulty (and dangerous) work was not.
3. Speak to your insurance provider first
If your business changes in any way, it's always good practice to notify your insurer. Whether you’re offering new services or adding a new employee to your team.
There are some important steps to follow if you do find yourself facing a claim. Firstly, never offer to make any payment to settle a claim without your insurer's approval. If you do, there is a risk the claim may not be covered.
Similarly to the above, if you receive any sort of legal correspondence, don’t admit liability without your insurers consent. Instead, politely acknowledge receipt, say that you're investigating the matter and will be in touch with a response shortly.
To get more tips on claiming on your insurance, read our making a successful claim guide.
4. Don't take unnecessary risks
Risks are part of business. But it’s important for the risks you take to be calculated.
If you work in the beauty industry, for example, always make sure you patch test your clients in line with the manufacturers requirements and keep a record of this. Allergies can change over time, so even if a customer has been a regular for years, it’s important to keep checking as per these requirements.
We’ve recently dealt with this exact issue where a customer developed an allergy to their hair dye, despite having the same colour for many years. Sadly, the salon hadn't patch tested for five years and the resulting claim wasn't covered.
See more from our expert
Lauren has over 25 years’ experience managing business insurance claims and knows what it takes to navigate the complex ones. She’s worked across the board — from helping resolve tricky disputes to working closely with insurers to get the best outcomes for her clients.
This content has been created for general information purposes and should not be taken as formal advice. Please always refer to your policy documents for full details around exclusions, terms and limits of your customised cover. Read our guide to understanding your policy documents.
Read on
Our business insurance guides can answer more of your public liability questions.
What is public liability cover?
Discover what public liability insurance is beyond the definition, including whether it's a legal requirement.
Examples of public liability claims
Find out what public liability insurance actually covers, which may help you decide if you need it.
How much does public liability cost?
Discover the factors affecting the price of public liability and whether you can afford not to be covered.
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