Is public liability insurance compulsory?

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It is not mandatory for businesses to hold public liability insurance; however, it may be worth considering if your business involves frequent interaction with the public, contractors or clients. This kind of cover will protect your business if someone makes a claim against you for bodily injury or damage to their property, either on your premises or as a result of your work.

While it’s likely that you are doing everything in your power to avoid accidents happening, sometimes these things can’t be avoided. A resulting court case or legal battle could be financially damaging for your business if you don’t have adequate commercial cover. Public liability insurance won’t protect you retrospectively, so to be covered from the start, it’s essential to have it in place before you begin interacting with members of the public or clients.

Unlike employers’ liability insurance, which is legally required if you employ one or more members of staff - it is not a legal requirement for businesses in the UK to hold public liability insurance. That said, some clients may ask for a minimum level of public liability cover as part of your contractual agreement. Some companies are also obliged to hold public liability insurance if they are part of a regulatory or membership body.

Is it a legal requirement to display public liability insurance?

It is not required by law that you display your public liability insurance certificate, however, by doing so it can offer your clients or customers reassurance and gain their trust that you have the appropriate insurance.

A public liability certificate acts as proof that you hold the cover and indicates the limits and effective dates of your business’ policy.

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