Public Liability insurance is an essential insurance for nearly all businesses. It’s the insurance that would cover a business if a customer or member of the public suffered a loss or injury as a result of its activities, and they decided to sue. And sue they do. You only need to watch daytime television to see a raft of ads from ambulance chasing law firms promising claimants riches following accidents. Nothing sums up the shift in the public’s attitude when it comes to seeking reparation better that the oft-used strapline, ‘Where there’s blame, there’s a claim’.
Liability Insurance: Claims Double in Five Years
Employers’ liability claims nearly doubled between 2009 and 2014, whilst public liability claims made against small to medium sized retailers more than doubled over the same period, according to data from AXA Insurance. This rise in claims activity supports the growing view that claims management companies, whose ability to make profit from motor claims has been significantly reduced by new legislation, are now targeting UK retailers with speculative employers’ and public liability claims to maintain their revenue streams.
In 2009, the percentage of retailers’ policies claimed against for public liability stood at just 1.9 . These had risen nearly threefold to 5.1 in 2014. Similarly, claims frequency on employers’ liability was just 23.6% in 2009, yet by 2014 it had risen alarmingly to 45%.
That there has been a distinct shift in consumers’ and employees’ attitudes to accidents in the work place is, it seems, beyond doubt. Mobile phones have made evidence gathering easy and with the constant call to action from the ambulance chasing elements of the legal fraternity, society as a whole appears to have become far more willing to embrace legal action.
Liability Insurance: Be Prepared. Be Protected.
How this rush to litigation began is subject to debate. What is less questionable is the practical issues this situation raises for business owners and their need to be prepared and be protected.
Public liability insurance is an essential cover for most types of business. Many customers want to be sure that your business has the right business protection insurance, and business owners owe it to them, as well as to themselves, to see that it is in place.
The public’s aversion to risks, whether improbable or likely, has grown over the last twenty years. They are better informed than ever before about the volume of accidents that occur and the type and are, as we have said, willing to seek recompense if they believe they have a claim.
In such an atmosphere it is perhaps unsurprising that so many councils or government service providers such as hospitals require high levels of liability cover for trades people working within their premises. Even chairs outside a high street café have special requirements from local councils these days, and having the correct insurance in place to deal with such an event is not considered unreasonable.
Liability Insurance: As Accidents Can Happen
No matter how careful your business is, there is always the chance that an accident can happen. With the right insurance cover, however, you can operate knowing that should the worst happen, your customers’ property could be repaired, their possessions replaced and their medical costs paid for, all of which makes liability insurance a small price to pay for great peace of mind.
Public Liability Insurance: What’s Covered
Public liability insurance policies are usually tailored to individual businesses; however, as a broad guide this type of insurance covers a business’s legal ability to pay damages to members of the public for death and injury or damage to property or possessions which have resulted from the business’s activities. For example; if you ran a grocers shop and someone slipped on a piece of fruit that had been left on the floor, then your liability insurance would meet the cost of any compensation claims that may arise.
Public Liability Insurance: Business Critical Cover
In this day and age public liability insurance really does offer business critical cover and in the wise words of the saying, ‘It’s better to be safe, than sorry.’
If you would like to know more about public liability insurance and how you can protect your business, get in touch with your Coversure broker today.