What should I look for in public business liability insurance?
When choosing public liability insurance for your small business, look for:
Level of cover – this is the maximum amount your insurance provider will pay out. Typically, the lowest standard level of cover is £1 million and you may consider that this is sufficient for your business. However, if the type of business you do means you have considerable exposure to the public, you might want to consider a higher level of cover. Some insurance providers will offer up to £10 million.
Your contract requirements – check whether any of your clients require a certain level of cover. Local authorities usually ask for a minimum cover level of £5 million before you can tender for work, but some may want £10m minimum. So it is worth checking before you tender for any contracts that your insurance fulfils any requirements.
Business activities covered – check exactly what activities are covered by the policy and that there are no exclusions that might affect you.
Compensation for loss of work – this could prove invaluable if you have to go to court and miss out on a few days of work.