Public liability cover and why you need it

What is public liability insurance and why do you need it? 

Public liability is a vital coverage to have in any capacity where you are dealing with the public through your work. While various insurance covers can be confusing, and when jargon is ever-present, you might feel overwhelmed. We’re here to separate the facts from the noise when it comes to public liability in Ireland. Here’s a 6-step break-down of what you need to know.

1. What is public liability cover?

The purpose of public liability policy is to defend you and your business against claims made by members of the public who suffer injury or damage to themselves or their property as a result of your work.

Public liability policies can cover you for accidents caused at your own premises or indeed accidents caused away from your premises.

2. Is public liability cover a legal requirement? 

No. Public liability cover is not technically a legal requirement.

However, it’s vital to understand that without it, in the event of a claim, your business will be 100% liable for the amount awarded if you or your company have been deemed negligent.  This is a risk no business should be willing to take.

3. What is compensation culture and why should I be aware of it?

While a debate surrounding the existence of compensation culture in Ireland is always in full swing, we’re here to provide some cold hard facts.

According to ‘RTE News Investigates’  the number of personal injury claims has increased nearly 50% since 2007. This is a startling figure that highlights a growing trend which has been coined ‘compensation culture’. This is undeniably something that all workers in the public domain should be aware of. While we know budgets are tight, now more so than ever, public liability is not something you want to economise on.

4. Why do you need it?

Suppose you own a business that has any contact with the public. In that case, there is always a possibility that you, as a result of your business activities could do damage to another person or their property. This means that you may be liable to pay the awarded fee. In Ireland, the highest personal injury claim ever awarded was €32 million. So, it’s essential to protect your business from the unexpected.

For example, let’s say you are a builder who is hired to do some renovations on a client’s site. One day you accidentally drop a tool which injures the client. If you don’t have public liability cover and the client makes a claim then you, personally, will be responsible for footing the entire amount awarded. This claim could be a major financial blow to your business, and it could be prevented  provided you have public liability coverage.

5. How much coverage should you have? 

A question that puzzles many people on the hunt for public liability is how much coverage they really need. For exemplary purposes, in Ireland, limits typically start in the region of 2.5 million and can go upwards of 6.5 million. However predominantly, businesses choose a cover somewhere in the region of those two figures. Your insurance broker can advise you of the best coverage for your business.

While it’s not a pleasant thought, it is vital to assess the worst possible accident that could take place concerning your business. By thinking within this scope, you’ll be able to give yourself a high-level risk assessment and then you can share your thoughts with your insurance broker. Naturally, once you get on the phone to an insurance expert, they’ll be happy to talk through the various offerings available and provide advice.

 

6. How much does public liability cover cost? 

There are several factors which dictate your public liability premium, including:

• The industry you work in.
• The number of employees within your business
• Your annual turnover.
• Any previous claims against your business.
• Whether you work exclusively in one country or if you also work abroad.
• The excess (the number you pay if a claim is made against you i.e. The higher the excess, the lower the premium).

However, while these factors may seem intimidating, they are all in place to make sure you get the cover you need in the event of an accident. If you go to a respected and trustworthy public liability cover provider, they can discuss potential plans with you in detail and provide the necessary coverage at the best price.

 If you’re on the hunt for professional and low-cost insurance advice, then why not reach out to Insuremyvan.ie? Experts at insuremyvan.ie are ready and waiting to help you choose the best liability insurance coverage possible. Get in touch!