PLI is generally considered an essential cover needed by the majority small and large businesses. While there are many types of business policies offering varying complexity, cover for public liability, although not required by law, is highly recommended when your business premises are open to the public.
The law requires a similar type of cover, known as employer’s liability insurance, for businesses that have employees. In many cases, you can purchase you public liability cover bundled together with an employer’s liability policy.
Here are some questions that you can ask yourself to determine whether you should take out a premium for your business.
Public liability will pay for claims resulting from negligence on the part of your business that causes damage to members of the public. The insurance covers actions by employees and it can also protect against damage caused by products you offer.
Depending on the specific policy, the plan can cover:
The premiums can vary depending on the type of business and the level of business activity. For example, businesses that pose higher risk to the public will need to pay higher premiums. Business with high turnover will generally pay higher rates, for example, a store with large amounts of foot traffic will pay more than one with less traffic with everything else being equal. Brokers can offer discounted rates in order to beat out the competition, so it pays to shop around compare prices.
The cost of insurance also depends on the amount of cover that you choose to protect your business. Generally, the minimum amount of cover available for businesses is £1 million. If your company bids for government contracts, there may be a requirement for cover ranging from £5 million to £10 million.
When comparing public liability insurance plans offered by different providers, make sure to read the fine print so you know exactly what you are getting for the price. The policy details can vary widely, so do not assume that they all cover the same things.
Here are some important items to look out for when reading the policy:
In addition to examining the policy terms and conditions, it is also a good idea to check on the company to ensure that it is reputable and reliable. You will want to avoid providers that hassle customers when they make a claim. Company ratings and reviews can help consumers in researching insurers. Some large financial firms provide ratings of these providers that give consumers an idea of their financial strength. This information is important particularly in times of economic downturn.
You can also find reviews and ratings that give you an idea of the type of customer service that the company provides, i.e., are they courteous and helpful during the claims process.