Understanding Public Liability Coverage
News
Advice
Posted on: November 24th, 2024
Public liability insurance is essential for protecting businesses and individuals from claims made by members of the public who suffer injury or property damage due to the policyholder's negligence. At Atha & Co, we frequently assist clients with these types of claims. This blog aims to guide business owners, employees, and the general public on understanding what public liability insurance covers and navigating these claims.
What Does Public Liability Cover?
Public liability insurance provides coverage against claims made by third parties, typically members of the public, who allege they've suffered injury or property damage because of your business activities or on your premises. This coverage can protect your business from the financial implications of legal proceedings and compensation payments.
Some common instances where public liability insurance applies include:
Slips, trips, and falls: If someone slips on a wet floor in your shop or office and sustains an injury, public liability may cover their medical expenses and any legal claims.
Damage to third-party property: If, during the course of business, you or one of your employees accidentally damages a customer's property (e.g., breaking a customer's phone), public liability insurance can cover the cost of repairs or replacement.
Accidents during events: If you are hosting an event and an attendee is injured, public liability can help cover the legal fees and any compensation owed.
How to Make a Public Liability Claim
If you need to make a public liability claim, following a few key steps can streamline the process:
1. Gather Evidence: Collect all relevant information related to the incident. This includes
photographs of the location or damage, witness statements, and details of the injured party or affected property.
2. Report the Incident: Notify your insurer as soon as possible. The quicker you provide your insurer with the details, the faster they can begin investigating and processing the claim.
3. Provide Supporting Documentation: Your insurer will likely request various documents,
such as medical reports if someone has been injured or repair estimates if property damage has occurred.
4. Cooperate with the Investigation: Insurers typically conduct their own investigation into the circumstances surrounding the claim. Be prepared to provide additional information and cooperate fully to ensure a smooth claims process.
5. Follow Legal Advice: It's always advisable to consult with a legal professional, especially if
the claim could result in a large payout or if there are complexities involved.
At Atha and Co, we specialise in helping our clients navigate the complexities of insurance claims, ensuring their rights are protected and they receive the appropriate compensation or coverage.
Does Public Liability Cover Damage to My Car?
It's important to note that public liability insurance generally does not cover damage to your own personal or business vehicle. Public liability is designed to protect you against claims made by third parties, meaning that any damage to your car or company vehicles would need to be covered by your motor insurance policy. If a third party damages your vehicle, you would need to claim against their motor insurance rather than your public liability coverage.
However, if you or your employees accidentally damage a third party's vehicle during the course of business operations, public liability insurance can cover the repair or replacement costs. For example, if an employee accidentally scratches a client's car while making a delivery, public liability insurance would likely cover the costs associated with the damage.
Does Public Liability Cover Employees?
No, public liability insurance does not typically cover injuries or claims made by your employees. For that, businesses need employers' liability insurance. While public liability protects against claims from the general public, employers' liability is mandatory for most businesses and covers compensation claims if an employee is injured or falls ill as a result of their work.
Employers' liability insurance covers:
Workplace accidents: If an employee is injured by faulty equipment, trips over a hazard, or suffers an injury in the course of their duties.
Work-related illnesses: If an employee develops a medical condition due to their working conditions, such as respiratory issues from hazardous materials.
It's important for businesses to ensure they have both types of insurance-public liability and employer's liability-to be fully protected from potential claims.
Conclusion
Public liability insurance is a critical safeguard for any business, covering claims made by third parties for injury or property damage. It's essential to understand the scope of this coverage, as it doesn't extend to employees or personal vehicle damage. At Atha and Co, we help clients across Middlesbrough and beyond navigate insurance claims and secure the compensation or protection they deserve. If you need assistance with a public liability claim, we're here to provide expert legal advice and representation.