Reviewing your public liability insurance

In 2019 to 2020, the UK Government's Compensation Recovery Unit recorded 72,587 public liability claims.

Whether you're a brand new business or simply tackling long-overdue business admin,then chances are your 'to do' list will include reviewing (or taking out) public liability insurance.

Firstly, what is public liability insurance?

One of the most popular covers for businesses, public liability insurance covers your business's legal and compensation costs if a client or member of the public suffers a loss or injury as a result of your actions. Even if you don't host clients or members of the public in your office, you could still be at risk when you or your employees visit clients' offices or attending industry events.

To find out more about what public liability insurance covers, check out our guides:

• What is public liability insurance?
• Do I need public liability insurance?
• What does public liability insurance cover?

• How much does public liability insurance cost?

  Reasons to review your public liability insurance:

  As with any type of insurance, keeping an eye on costs and cover details over time is a good idea. Many businesses choose to do this on an annual basis, although if things change for your business. For example, you're winning bigger contracts. It may be worthwhile reviewing things more often (particularly if your insurance provider offers the flexibility to add and remove cover as and when you need to) - hint: we do - or if you're seeing internal changes such as...

1. Your team is growing As you take on more employees, including temporary workers, contractors and volunteers, the risk that you'll face public liability claims will grow too. On a side note, don't forget to think about your employers' liability insurance too - which is a legal requirement for UK businesses with employees.

2. Your business travels with you Attending exhibitions and conferences is a great way of getting your name out there, making contacts and growing your customer base. But attending these events also means there's a greater chance you could be held liable if you cause an accident or injury to another member of the public. If this results in a claim, public liability insurance will make sure you don't foot the bill.

   Contractual reasons

   It's becoming increasingly common for organisations to stipulate that their suppliers have public liability insurance as a condition of working with them. In this situation, it's a no brainer and could be the difference between gaining that dream client, or watching them go to a competitor. So, it may be a good idea to review your cover if...

3. You're starting to work with bigger clients A good rule of thumb to remember is that the bigger your clients, the bigger the potential liability. So if you're winning big, take a moment to review your level of your cover, making sure it's sufficient for your needs.
4. You're seeking public sector contracts Winning bigger clients is a sign that your business is going places. But bear in mind, that in general, the bigger your clients, the bigger the potential liability. So if you're winning big, take a moment to review your level of your cover, making sure it's sufficient for your needs.

If you're unclear about the cover you need and think you may benefit from more than public liability insurance alone, we've put together a handy guide to the different types of business insurance, which includes questions to ask yourself when considering each cover and examples of the cover provided.