Public liability insurance

People are aware of various insurance polices which are offered by a number of insurance companies. Generally people deal with life insurance, medical insurance or auto insurance in most of their life time. There also exists an insurance called as the business insurance. The public liability insurance belongs to the category of business insurance.

The public liability insurance covers for damages caused to the member of public because of an injury or damage to their property caused by you or your business. It also covers any legal fees, cost of hospital treatments including ambulance costs. You can find details about the injury costs recovery scheme on the Department of Health web site. This insurance is applicable to both the types of businesses. The first one is, you work from home, and customers or members of public visit your place. The other type of situation is you visit number of people at various locations.

Some businesses, for example horse riding establishments, are required to have public liability cover. In many situations customers request you to show proof of liability insurance and you need to satisfy the customers accordingly.As a business owner or employer, you have a legal responsibility towards your employees, customers and public.

The cost of insurance, known as premium is typically worked out using a book rating. A book rating is calculated using a base rate, which includes the insurers cost and reflects their appetite for your type of business. If insurer is inclined to the business you are doing, then the rate of premium will be less. The premium is also calculated on the insurers estimate of the level of risk attached to a particular business

The premium will be affected by factors such as your claims history, the size of perceived risk and your approach to risk management. In case you follow the practice of minimizing risk as an ongoing process, it will result into safe working conditions. The safe environment and fewer claims you have made, will let the insurer charge you less on premium. Premiums are also calculated on the records of other similar business. The records available with the insurer are of mixed nature, it may be either good or bad record. Small businesses with good record may be adversely affected by this. Your own safety record and approach to risk management can minimize the effect of records.

You should consult an independent financial advisor for people related risk and business planning issues, such as life insurance, protection, health and business continuity. You also need to ensure that your advisor has financial services authorization. At the time of dealing with the financial advisor always be honest. You must tell the absolute truth, or in other words, to act in utmost good faith. Providing incomplete information or withholding something that is relevant can invalidate a claim, contract and policy. Relevant information is a broadly defined term, and if you have any doubt at all regarding the relevance of information you should declare it. Your advisor can assist in deciding the relevance of information submitted to the insurance company.