Types Of Liability Insurance

No matter whether you are starting a business from home or have been operating for some time, you should be aware of the various forms of liability insurance.
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What is public liability insurance?

Public liability insurance covers you for loss, damage or injury to members of the public and their property. It will often apply to incidents that take place at your property, or at events organised by your company. Public liability insurance is designed to cover compensation as well as any legal expenses if a claim is made against your home business.

Who does public liability cover?

Public liability insurance will cover anyone that you interact with for business purposes. This means visitors to your premises, customers or clients and even event spectators. Of course, you have a duty of care to all members of the public visiting your business and should maintain the property in a good condition, but public liability cover is designed to protect you should the unforeseeable happen.

Situations where public liability insurance could apply

  • A visitor trips over a box of stock that has not been properly stored away. The policy would cover the cost of treating their injuries.
  • A customer parks their car in your driveway and a roof tile is blown off in strong winds, damaging their windscreen. The policy would cover the cost of repairing the glass.

Business use with visitors

If you run a business where customers come to your home, such as dog grooming or counselling, then you should invest in Public Liability Insurance. Although this is not a legal requirement in the UK, it should still be regarded as essential by any business owner. Many companies that you might hope to collaborate with will insist on their suppliers having public liability cover in place.

An important fact to note is that public liability insurance does not cover staff, students or those on work placements. For this, you need Employer’s Liability Insurance.

Running a business from home need-to-knows

No matter whether you are starting a business from home or have been operating for some time, you should be aware of two other forms of liability insurance.

Employer’s liability insurance

When you operate a business from home that also employs staff, you are obliged by law to source Employer’s Liability Insurance. This is specialist cover, separate to your home insurance, and should be sought from a trusted provider elsewhere. This cover is designed to protect the interests of employees due to illness or accidents in the workplace.

Professional indemnity insurance

If you hire an external consultant to help with your home business, such as an Accountant, you should make sure that they have professional indemnity insurance in place. This type of insurance is designed to cover claims in the case of negligence, error or omission, copyright infringement, loss of data, libel, slander or defamation, breach of contract or confidentiality.

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