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What is Public Liability Insurance, and Does My Startup Need It?

Bernadine Racoma

Bernadine Racoma

Senior Content Writer at Day Translations
Bernadine Racoma is a senior content writer at Day Translations, a company that offers professional translation services, localization and interpretation solutions for legal, medical, finance, IT and other industries.
Bernadine Racoma

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Not taking the time to understand public liability insurance can often lead to serious financial consequences for new entrepreneurs starting a business. Here, we provide a simple overview of this type of insurance policy in order to help you determine whether or not it’s necessary for your particular business.

What is public liability insurance actually for?

Public liability is a type of insurance that protects you in the event that a member of the public makes a claim against your business due to injury or damage to property resulting from your business, or one of your products.

This article on public liability insurance from leading insurance provider, Hiscox, provides useful examples of different types of accidents and mishaps that can easily lead to a claim against your business.

By protecting your startup with public liability insurance, you insure your startup is covered when it comes to legal fees and other expenses involved in defending a claim, should one arise.

Does my startup need public liability insurance?

If your startup’s line of business involves regular interaction with members of the public, then you should seriously consider a public liability insurance policy. Whether it’s a shop, a restaurant, a salon, or a gym, accidents are bound to happen at some point, and when they do, you want to be protected.



My startup is a home-based business. Do I need public liability insurance?

You might assume that if you’re not working in a public place, you won’t need public liability insurance. However, a client visiting you at home could still injure themselves. For example, if you offer beauty treatments from your home, a client could easily slip and fall, or experience a bad reaction to a cosmetic product.

Even if you run a business that doesn’t involve customer visits, it’s highly likely that you could still need this type of coverage. For example, if you run a manufacturing business from home that requires you to receive regular deliveries, the delivery driver could fall because of a damaged front step, causing serious injury. This type of unexpected claim could easily threaten the future of your business, so it’s much smarter to be covered from the beginning.


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Are there any other instances in which I might need public liability insurance?

There are a number of other scenarios in which it might be prudent to take out a public liability insurance policy. For example, if you need to visit a client’s property to deliverer a product or provide your services, you always run the risk of accidentally damaging something of theirs. The client is then well within their rights to file a demand for the cost of repairing or replacing the item you damaged. Public liability insurance will help you cover the cost.

There is no doubt about it, public liability insurance is a must for most entrepreneurs starting a new business. It will protect you in the event of any unforeseen claims and can be the lifeline you need during a difficult situation. If you know you need this type of coverage but are not currently protected, be sure to speak to a registered insurance broker as you build your business.

Content sponsored by Ocere Ltd.

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