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is-public-liability-insurance-compulsory | Capital Office

Is Public liability insurance compulsory?

The area of public liability insurance can take on specific requirements, so if you`re not sure, then you should contact your local authority.

For many industries, though, some customers or clients will need to be presented with proof of public liability insurance from yourself. When working with local authorities or other government institutions, this type of insurance is particularly common. Local authorities often require a minimum of £ 5 million of public liability cover.

The level of public liability insurance cover

Determining the level of cover required by insurance companies or insurance brokers can be difficult to determine. It depends on:

• The nature of your business;
• Members of the public and the dangers posed to your business premises and operations;
• Size or turnover of your business;
• The type of customers;
• The number of people you employ;
• Your insurance claims history.

These factors will also affect the cost of insurance.

Reduce the likelihood of a claim and therefore carry out a proper and regular risk assessment to help keep the cost low. Minimise the chance of accidents by taking appropriate controls and have regular risk assessments completed and put in place.

Why insurance?

Everything is always understood and under control, even when business customers, visitors or others are involved in an accident that causes injury or loss of earnings. Should such an accident occur in which your business is responsible and you are not insured, the costs can be significant. If your business is unable to meet the expenses, it also gives you a bad name, and it may be hard for you to find new business in the future.


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