Do I need public liability insurance?

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Lee

We turned to Swoop for support with securing funding for our company’s expansion, and I’m thrilled to say they delivered above and beyond our expectations. From the very start, Adrian and Nichola were outstanding – professional, knowledgeable, and always willing to go the extra mile to help us achieve our goals. The process was seamless, with clear communication every step of the way. They took the time to understand our business, worked diligently to identify the best funding options, and ensured everything was in perfect order. Their expertise and guidance gave us the confidence to move forward and grow the business as planned. Thanks to Swoop, we now have the funding we need to take the next step in our journey. I can’t recommend them highly enough for any business looking for financial solutions. A massive thank you to the Swoop team for helping us turn our vision into a reality. I’ll definitely be returning when we take on our next stage of growth

Dec 17, 2024

Chris Palmer

We have used Elizabeth on 2 recent funding transactions. She is a star. Always checked in at end of day where things were at & updated me. Great customer service & would certainly recommend her. Thankyou Elizabeth.

Dec 12, 2024

Mike maur

It's been a pleasure dealing with Elizabeth, Def a Gem for her business. Amazing communicator and process dealing with all the paperwork was made easy and stress free. Keep it up !

Nov 28, 2024

Nasir Abbas Kazmi

I applied vehicle Finance through Swoop & lady Ikra help me from Beginning to end,she s very professional & helpful. Its just took 3 to 4 days & now i got new vehicle. I received Best customer services from Ikra & High recommend for this Swoop Finance.

Nov 26, 2024

Hazel Cuizon

Ayesha was very prompt and friendly to deal with and answered all my questions in a timely and professional manner. Very happy, highly recommend 🙂

Nov 24, 2024

Andrew Frazer

Cynthi was a fantastic help in organising what was needing and obtaining finance

Nov 8, 2024

Chris Skeates

Predrag and the Swoop team have been outstanding. Very attentive to our needs and staying on top of our funding request with their partners.

Oct 24, 2024

Leo Tsuo

Great experience. They quickly understood my needs and was fast to find a lender that met those needs. Highly recommend

Oct 22, 2024

Kash De Silva

I had a fantastic experience working with Elizabeth Tan for my business lending needs. She provided exceptional support and guidance, helping me navigate the process with ease. Her expertise and dedication were instrumental in taking my business to the next stage. I highly recommend her to anyone looking for lending assistance!

Oct 15, 2024

Shannon T

Cynthia has gone above and beyond, explained the process, consequences, and found me the most suitable solutions for my business in a very busy time! I found the help (even before I was guaranteed to use them) invaluable and the help made all the difference!

Oct 9, 2024

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Page written by Chris Godfrey. Last reviewed on September 24, 2024. Next review due October 1, 2025.

Public liability insurance (PL) is a good idea for almost all businesses, (including sole traders and the self-employed), but it is essential for those that interact with the general public and work for local councils or central government.

Some personal injury or property damage claims can run into the hundreds of thousands or even millions of pounds. If your business operations put your organisation in a position where a customer, client, supplier or a passing member of the public (even in or on a vehicle) could suffer injury or damage to their personal property, then you need PL to protect your business against the potential of crippling financial claims. Additionally, some customers may demand that you have public liability insurance before contracting with your organisation.

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Why you could need public liability insurance

Accidents can happen anytime, anywhere. Those that cause personal injury or damage to the property of the general public or your clients, customers, and suppliers as a result of the services your organisation provides, could have a huge financial impact on your business. Because accidents cannot be foreseen, public liability cover is the only way you can protect yourself and your business from events beyond your control.

What is public liability insurance?

Public liability insurance is a type of business insurance that protects your organisation if someone is injured, or their property is damaged because of the services that you or your business provides. This type of cover, also known as PL or liability insurance, is designed to protect your company against third party claims for injuries or property damage from a customer or client, passer-by, or a visitor to your business premises – whether you’re at fault or not.

Is public liability insurance mandatory?

No. Only employers’ liability cover is required by law. However, the potential losses from not having public liability insurance can far outweigh any premium savings you may obtain.

What trades need liability insurance?

Businesses that typically require PL to operate safely include:

Builders and Landscapers
Electricians
Plumbers
Carpenters
Cleaners
Roofers
Carers
Telecommunications and TV installers
Event organisers
Restaurants, Hotels and Pubs
Retailers
Beauty and Hair Salons

Is it worth having public liability insurance?

The average US public liability claim in 2023 was $13,500 plus defendant’s legal expenses. However, some compensation claims for personal injuries or fatality can run into six or even seven figure sums – more than enough to sink many SMEs. Compare this risk to the average $67 monthly cost for PL cover, it becomes clear that it’s simply not worth going without this type of insurance.

What does public liability insurance cover?

Public liability insurance can protect your business from the financial impact of claims that include:

Personal compensation – for the injury or death of a third party, including the loss of earnings and future loss of earnings
Medical fees – including the cost of calling out an ambulance, treatment and a stay in hospital for the claimant, plus their rehabilitation
Repairs – including the cost of labour and materials
Legal costs – including the cost of defending you against a claim and the claimants’ legal costs if you’re found to be at fault

What’s not covered:

Accidents that affect your employees or their possessions – if you employ anyone, you must have employers’ liability insurance by law. This covers anything that might happen to your employees
Accidents that happen to you or damage to your own property – protection for yourself or your business premises is usually covered under a general business insurance policy

How much public liability cover do I need?

The amount of public liability insurance you need depends on the industry you work in, and the size of your contracts or sales. In most cases, the bigger your sales are, the higher potential claims may be. (Keep in mind that a claim for personal injury or property damage will usually be increased by added legal fees and other clerical costs). If you work with government departments or local councils, you should consider a policy of up to $10million, although minimum cover levels typically start at around $5million, which is more suitable for small businesses, sole traders, and organisations that have less contact with the public.

What happens if I don't have public liability insurance?

If someone makes a claim against you or your business and you do not have public liability cover, you will be responsible for paying your own legal costs. If the claimant is successful, you may also be responsible for paying their legal expenses and compensation award.

How Swoop can help

All business involves risk, but that doesn’t mean you have to suffer the consequences if things go wrong. Don’t let an accident or mistake become a catastrophe for your business. Contact Swoop today to compare top-quality public liability cover from different providers and to discuss all your business insurance needs.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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