Public Liability Insurance Claim Examples

Understanding the public liability insurance claim examples below can help you to recognise the potential risks your business may face. They also underscore the importance and benefits of appropriate insurance.

Common types of claims

For a claim to be successful against you there must be some fault/negligence on your behalf. Common public liability insurance claims arise from incidents including:

• Slips and falls on business premises: This kind of accident can occur due to wet floors, uneven surfaces and even poor lighting.
• Third-party property damage caused by business operations: This could be an incident in which a contractor accidentally damages a client's property.
• Accidents involving business products: This type of claim is where a business’s product supplied causes accidental injury or damage. Products liability insurance will be required to cover this.

The risks that businesses face can be quite diverse. For this reason, it’s wise to consider investing in public liability insurance. It can help protect your business from the potential financial and legal ramifications of a wide range of accidents.

Example 1: Slip and fall accident

• In a busy café, a customer slips on an unmarked wet floor and breaks their wrist. They allege fault on your behalf and initiate a claim for medical expenses and suffering.
• The café owner reports it to their public liability insurer, who will investigate the circumstances and defend your position covering legal costs. If you are found to be at fault the policy will cover the bodily injury awards and medical expenses.
• This coverage protects the café from significant out-of-pocket expenses, allowing it to continue operating without the financial burden of the accident.

Example 2: Property damage due to business operations

• During a home renovation, a contractor accidentally damages a client's wall unconnected with the actual works being undertaken. The client initiates a claim for the repair costs.
• The contractor reports the incident to their public liability insurer, who assesses the damage and validates the claim. If you are at fault then the insurer compensates the client for the repair costs, ensuring the damage is fixed quickly.
• This process protects the contractor from the financial burden. His public liability insurance means that he is covered in the event of such at fault accidents.

Example 3: Product liability incident

• A faulty appliance sold by a business catches fire. The fire causes property damage and minor injuries. The affected customer initiates a claim.
• The business's products liability insurer investigates the circumstances. Was the product fault causing the accident due to negligence on you part? If yes, then the claim will be handled under your property, alternatively the insurers of the policy will defend you and re direct the claim to the manufacturer or supplier.
• This coverage protects the business from significant financial and legal repercussions.

Preventative measures and risk management

To reduce the likelihood of public liability insurance claims, businesses should have good, strong risk management practices.

Basic safety processes should be in use. Clearly marking wet floors and ensuring adequate lighting can prevent slips and falls. Regular maintenance of premises, including repairing uneven surfaces and maintaining clear walkways, can help to reduce the risk of accidents.

If your business sells products, thorough quality checks are very important. They help to avoid defects that could cause injury or damage. Employee training on safety standards and incident reporting also reduces risk.

Choosing the right coverage

The right amount of public liability insurance for you depends on your business type, size, and the typical risks you face. Assess potential hazards, such as customer interactions and product liability to determine appropriate coverage.

Consulting with insurance professionals can be helpful. They can help to tailor your policy to your business’ specific needs.

Ready to get covered?

Public liability insurance can be helpful to your business, as illustrated by these examples of slips, property damage and product faults.

It can safeguard your business from significant financial and reputational damage. It does this by covering things like medical costs, repair expenses and legal fees.

Public liability insurance from Towergate

If you’re looking to protect your business from unforeseen accidents, don’t miss our public liability insurance. Get a quote today, 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), member of the Association of Tax Technicians (ATT) and also has over 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.