Public liability insurance is meant to protect businesses from lawsuits filed by members of the public who have been injured or whose property was damaged due to the insured’s actions in the course of conducting business.
The policies will pay for your legal defense and any damages awarded to third parties if you are found negligent. Some policies will cover injuries or property damage you cause away from your business’s location, while others will only cover them while you’re on the premises. Insurance limits in Ireland typically begin at €2.6 million, but if you work for a government agency in Ireland, they will likely require you to have at least €6.5 million in coverage.
Should I Get General Liability Insurance?
The public may file a lawsuit against you if they sustain injuries or property damage as a result of your business operations. It can be very expensive if someone sues you for injury or damage.
The ability to defend any claim and pay any award that may result from your negligence is contingent on having a public liability policy. It is up to the individual to decide if they want to purchase public liability insurance, as it is not typically required.
The Annual Cost of Public Liability Insurance
Because of the complexity of the variables at play, estimating the cost of insurance for public liability is difficult. The price of public liability insurance can be affected by several variables, including
- What you do for a living and the field you operate in
- Earnings to loss ratio
- Your company’s financials
- Those who perform their duties away from the office, whether domestically or internationally
- Loss or damage claims filed in the past
- Liability to third parties
If you’re self-employed and planning to hire employees, you should get both employers’ and general liability insurance.
Employers & Public Liability for the Self Employed
Employer’s liability insurance protects businesses from lawsuits filed by workers injured on the job. The purpose of the policy is to pay for the injured worker’s legal fees and any settlement or judgment that may be issued as a result of a claim.
In Ireland, the typical coverage amount for employer liability insurance is €13,000,000. In Ireland, employers are not required to carry employer’s liability insurance, but it is strongly recommended.
Public liability insurance is meant to protect businesses from lawsuits filed by members of the public who have suffered injuries or whose property was damaged due to the insured’s actions in the course of conducting business.
The policies will pay for your legal defense and any damages awarded to third parties if you are found negligent. Public liability insurance policies typically have limits beginning at €2.6 million. Similar to employer liability insurance, it is not required but can be beneficial for a sole proprietor to carry.
Do You Have to Have Public Liability Insurance?
To put it briefly, no; however, as a business owner, you run the risk of being sued if your actions cause harm to another person or their property. Having Public Liability insurance is a smart move because it protects your business from lawsuits filed by members of the public who allege they suffered injuries or whose property was damaged as a direct result of your operations.
The policies will pay for your legal defense and any damages awarded to third parties if you are found negligent. The minimum amount of coverage for public liability insurance is usually around €2.6 million. As in the case of employers liability, it is not compulsory to have, but it does make sense for a self-employed person to have the cover.
How Much Should My Policy Limit Be for Public Liability?
Limits in Ireland typically begin at €2.6m and rise to €6.5m or more. Most corporations buy insurance with limits between €2.6 million and €6.5 million, though occasionally larger limits are purchased.
When deciding on an insurance policy limit, you should think about the worst accident that could happen as a result of your company’s operations and whether or not that limit would be sufficient to cover legal fees and compensation for victims.
Examples of Public Liability Claims
- When a drama instructor plans a class and then spills water on the ground where the students will be practicing, she may be held liable if one of the students slips and hits his or her head.
- IT consultant drinks coffee at client site; spills coffee onto widescreen TV; consultant is responsible for repairs to TV.
- A customer with a particularly large head was injured when an overhanging part of a market vendor’s stand protruded too low and hit the man on the forehead.
- A participant is hurt when a life coach loses control of himself or herself on stage and accidentally knocks over a chandelier.
- An engineer is currently on-site at a client’s location, where he is installing monitoring instruments. A member of the public falls over the measuring equipment which causes injury. The engineer is the target of a claim for damages to the public.
- A visiting accountant spills his coffee on the client’s server room floor – Someone spills and destroys the server; the accountant is sued for carelessly setting the cup down on the computer, which resulted in the system’s destruction.
Other Things to Consider
If your occupation is unclear or you are doing work that is not specifically listed as part of your occupation, you will likely not be covered by your policy.
You’ll want to make sure you pick a sufficient limit of indemnity, or the most money the insurer will pay out if you file a claim, because the policy’s coverage has limits on how much they’ll pay. In the Irish market, typical upper limits range between €2,600,000 and €6,500,000.