Public liability insurance for businesses protects the policyholder in respect of claims made against them by third parties for property damage or personal injury arising out of and in the course of the insured’s business.
Public Liability Insurance Limits Of Indemnity
The limit of indemnity under a public liability insurance policy is the maximum amount of the insurers liability in respect of claims made under that policy. In layman’s terms a sum insured, although this expression is technically incorrect and is never used.
The limit of indemnity is determined by the policyholder and this may be driven by the extent of the protection they require based upon their assessment of the risks or may be determined by contractual requirements placed upon them by companies and organisations that they are undertaking work for.
The most common limits are £1 million, £2 million and £5 million, but it is common to see requests for higher limits across a variety of industries and occupations, particularly in areas of work with a higher perceived risk e.g. aviation, rail, mining etc.
Public Liability Insurance Policies
Public liability insurance is available from a wide range of insurance companies, with a highly competitive market established for this line of business. The actual cost of effective third party liability insurance can be very low for businesses and individuals that present a perceived lower risk to insurers, whilst for more hazardous businesses and activities the costs will of course be significantly more.
Premiums for public liability insurance are based on simple information intended to inform the underwriter what the businesses activities are, how much work is undertaken, where it is undertaken and the previous experience of the proposer in those activities.
As the policy is a contract of legal liability, the policy wordings in use by insurers are extremely similar and generally follow the same pattern. The key things to look out for is to ensure that the business description under the policy provides an accurate representation of your activities and that any endorsements on the policy are full understood. Insurers use policy endorsements for a number of reasons these may be exclusions of certain activities or the imposition of certain responsibilities under the policy such as health and safety or risk management procedures that must be followed. You should check these carefully and ensure that they meet with your requirements, if they do not, then you must speak to us immediately so that we may address the problems.
Obtaining public liability insurance quotes is, for most businesses, a very fast and straightforward process. Our on-line public liability insurance quote service provides instant access to quotes from a panel of insurers for literally hundreds of occupations and trades, with the opportunity to but on-line and download your policy immediately.
Our team of public liability insurance brokers reviews all quotes and is able and on hand to assist you with any queries you may have and will produce quotations quickly for even the most unusual risks, often immediately.