How Do I Check if Someone Has Public Liability Insurance?

Public liability insurance is a type of cover that can protect general and building contractor businesses against third-party claims for injury or damage caused from business operations. It ensures that unforeseen accidents or damage that occur during your operation are financially covered.

Sometimes you may want to find out if a business you’re currently dealing with, or wish to deal with, has the type of insurance cover you’d like them to have. How do you check if someone has public liability insurance, and why would you want to know this in the first place?

Reasons to verify insurance

The only form of insurance that businesses are legally required to arrange is their employer’s liability insurance, and this must be evidenced by displaying their employers liability certificate. They do not have to show you their public liability insurance certificate, but you can ask them to provide evidence of cover being effective.

Aside from safeguarding your business against third party claims, public liability insurance verification is important for ensuring compliance with industry standards. Many sectors nowadays require such insurance for operational and contractual reasons.

Verifying public liability insurance can also strengthen the trust and professionalism between parties throughout business dealings. Having the correct type of cover demonstrates that the business or contractor is responsible and prepared to handle unforeseen accidents, promoting a secure professional relationship. Be sure to check that the business activities you require are insured, and that there are no exclusions or restrictions that would affect you.

How to check if someone has public liability insurance

Here are some of the ways you can check:

1. Ask directly 

The easiest way to verify public liability insurance is to simply ask. It is well within your rights to directly ask a business to provide proof of their insurance before they start work.

You can request to see their certificate or ask for a verification of public liability insurance. If they are insured, most businesses and contractors will be happy to show it when asked. It should include essential information like the insurer name; type of and amount of cover (policy limits and excess); significant and unusual exclusions; policy number; cover commencement; and expiration dates.

Once you’re sure they are sufficiently covered you can safely go ahead with the work, having confirmed that the business is adequately insured against potential liabilities.

2. Check with the insurer

For extra peace of mind, you can verify a certificate’s authenticity by contacting the insurer directly. Most likely you will need written permission from the firm in order to do so.

When reaching out, request confirmation that the policy is active and inquire about the coverage specifics. Ask for details such as the coverage amount, policy number, expiration date, exclusions and the types of incidents covered.

This step ensures that the certificate is valid, and that the insurance meets your requirements. Double checking with the insurer adds an extra layer of security, confirming that the business is fully insured and prepared to handle potential risks.

3. Check with industry bodies and associations

Some trade bodies or associations mandate that public liability insurance is held by their members.

Checking if a business is a member of such organisations can be a good indicator that they’re properly insured. Membership often requires proof of cover, ensuring that the business in question meets industry standards and is adequately covered.

Legal implications of uninsured contractors

Working with businesses or contractors who don’t have appropriate public liability insurance can lead to significant legal and financial consequences. Particularly if a sub-contractor you are using is uninsured and they cause injury or damage. Dependent upon the circumstances, you may be held responsible, leading to costly legal battles and financial strain.

Without insurance, covering the consequences of accidents could potentially fall on you. Compensation can be substantial, and may threaten your financial stability. Additionally, using uninsured contractors can breach contractual requirements resulting in charges or penalties. Verifying insurance is essential to avoid these risks.

By verifying the business or contractor is fully insured and prepared for any unexpected events, you can make sure that you are protected against any potential liabilities and legal repercussions.

Regular updates

Ensuring a business's insurance is valid throughout a project is crucial. Public liability insurance must be maintained to provide continuous protection during a construction contract.

Most insurance policies last for 12 months and can expire at any time during the calendar year. Therefore it is important for you to have systems to set reminders to check for insurance renewals periodically. This proactive approach ensures that the business remains properly insured, protecting you from potential liabilities.

Is your business insured?

Verifying public liability insurance is important to protect against any potential legal and financial repercussions. It also ensures compliance with industry standards and deepens trust in business dealings.

To verify, ask for the contractor’s insurance certificate or verification. Contact the insurer, check industry memberships and use any available online tools. Remember to regularly check to make sure the business stays covered.

If you’re looking to get your business covered with public liability insurance or employers liability insurance, don’t hesitate to get in touch with us for a quote.

Public liability insurance from Towergate

Get your business covered today with our public liability insurance policies. Get a quote from us, either online or by phoning us on 0330 818 9929.

Employers liability insurance from Towergate

Get your business covered today with our public liability insurance policies. Get a quote from us, either online or by phoning us on 0330 818 9929.

About the author

Alison Wild BCom (Hons), FMAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a Fellow member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.

This is a marketing article by Towergate Insurance. Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

The information contained in this article is based on sources that we believe are reliable and should be understood as general information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such.