Do You Need Public Liability Insurance on Private Property?

Public liability insurance protects you against allegations of claims for accidental injury or damage made by third parties. Its general purpose is to provide you with legal defence costs and  financial protection if someone is injured or their property is damaged due to negligence arising from your business activities.

The term private property refers to any non-publicly accessible area owned by an individual or entity. This could be a home, private land or business premises. However do you need public liability insurance on private property?

Understanding public liability insurance

This kind of insurance covers legal costs and compensation for injuries or damage to third parties that occur as a result of negligence arising from your business operations.

A common misconception is that this insurance is only for public or commercial areas. It’s also helpful for private properties, such as homes or business premises.

With public liability insurance, your business will be better equipped to handle legal claims if an accident occurs on your property.

Scenarios requiring insurance on private property

Having a tailored public liability insurance policy is beneficial to a business run from private property in a number of situations.

If you frequently host public events like parties or charity functions, the risk of accident, injury or damage is increased. Similarly, if you run a home-based business like a daycare or small shop.

When clients and customers visit your business premises, the potential for mishaps is higher, and the need for protection is raised too.

Deliveries also increase the likelihood of accidents and damage. Whether they’re personal or business related, deliveries bring delivery personnel onto your property.

In these situations, public liability insurance can protect you for the legal defence costs arising from allegations of injuries or damage that occur on your property to members of the public.

Legal obligations and considerations

It’s not a legal requirement to have public liability insurance on private property, but it’s often recommended.

Local regulations can differ, so it’s wise to check specific legal requirements in your area. Even if not legally required, having public liability insurance is a smart measure to help protect your business from financial risk.

Financial implications without insurance

Without public liability insurance, an accident on your private property could lead to severe financial consequences. Let’s say a visitor slips and breaks a leg – you could be liable for their medical bills, legal fees, and compensation for lost income if you are found to have been at fault.

Covering medical expenses and damages for pain and suffering is not cheap. These costs can be financially crippling and lead to significant debt or even bankruptcy. Public liability insurance can help to protect you from such devastating claims.

Benefits of having public liability insurance

Maintaining public liability insurance offers several key benefits.

Protection from claims 

This type of cover can help with the often substantial legal fees and compensation for injuries or damage occurring on your property.

Peace of mind

Public liability insurance can give you some financial security against unforeseen accidents. This in turn reduces stress and worry.

Helps business operations

When your business is covered by public liability insurance, you’ll not only meet legal requirements but also client expectations too. This can help your business run smoothly and reputably.

Supports event hosting

This insurance can help ensure the safe hosting of events, reducing financial risks.

Professional reputation

Having a public liability insurance policy can enhance your credibility with clients and customers by demonstrating responsibility in business.

How to choose the right policy

There are a few things to consider when selecting a public liability insurance policy. Here are a few to take into account.

1. Coverage limits 

Ensure the policy covers potential risks adequately. Tailor your policy to your specific business risks as much as possible.

2. Exclusions

Understand what incidents may not be covered. If something isn’t included in the policy but is likely to affect your business, look elsewhere. Seek guidance from a professional insurance broker.

3. Premiums

Get the most value for your money by comparing costs and coverage from different insurers.

4. Consult with professionals

Seek advice from insurance professionals to tailor coverage to your specific needs.

5. Stay within budget

Choose a policy that offers sufficient protection while remaining financially viable.

Ready to get covered?

Public liability insurance can be hugely beneficial for property owners to protect against financial burdens from accidents on their premises.

Be sure to consider your individual coverage needs when arranging a policy. Look at the specific risks your business faces and use this to inform coverage limits and premiums.

Public liability insurance from Towergate

Are you ready to get covered? We offer public liability insurance and are always happy to help. Get a quote today either online or by phone 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 member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has 20 years' experience as a residential landlord.

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.