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Is Employers’ Liability The Same As Public Liability?

Welcome to our article on the key differences between employers’ liability and public liability insurance. As UK businesses, it’s essential to understand the various types of liability insurance available, including the coverage they offer and the risks they protect against. Without the right insurance, your business could be vulnerable to significant financial losses from unexpected liability claims.

While employers’ liability  and public liability may sound similar, they are, in fact, two different types of insurance that serve distinct purposes. Understanding the differences between them is the first step in ensuring your business is adequately protected.

Key Takeaways:

  • Public liability and employers’ liability are business covers that serve different purposes.
  • Public liability covers your business against liability claims from members of the public.
  • Employers’ liability insurance covers your business against liability claims from your employees.
  • Both types of insurance are crucial for comprehensive coverage, and UK businesses should seek professional advice before making any coverage decisions.

What is Public Liability Insurance?

Public liability insurance is a type of liability protection that businesses can purchase to protect themselves against liability claims made by the public. This type of insurance covers a wide range of scenarios, including accidents and damage caused by your business to people or property outside of your own employees.

Liability claims can be costly and damaging to a business, so having public liability insurance is essential for those that interact with the public. It provides peace of mind and financial protection against unforeseeable events.

What does public liability insurance cover?

Public liability covers a variety of liability claims made against a business, including:

ScenarioExample
Accidental injury or deathA customer slips and falls in your shop
Damage to propertyYou accidentally knock over a valuable vase in a client’s home
Legal expensesYou need to pay for legal fees if you’re sued by a member of the public

 

Having public liability insurance in place means that your business is protected against the financial implications of an accident or unforeseen event.

Choosing the right public liability policy

Public liability coverage options can differ depending on the nature of your business and the risks it faces. It’s important to review your coverage options carefully to ensure that your business is adequately protected. Some factors to consider when choosing a policy include:

  • The size of your business
  • The types of activities your business is involved in
  • The level of risk your business faces
  • The amount of coverage you need

At Tradesman Saver, we offer tailored public liability coverage options to meet the unique needs of your business.

What is Employers’ Liability Insurance?

This type of insurance covers the cost of claims made against your business by employees who have suffered an injury or illness as a result of their work. It is a legal requirement for most UK businesses that have employees, including part-time and temporary workers.

Employers liability  protects your business against the financial impact of compensation claims. If an employee suffers an injury or illness while working for you, they could be entitled to compensation. Employers liability insurance can help cover the cost of compensation, legal fees and any other associated costs.

It’s important to note that employers’ liability does not cover claims made by members of the public. For this, you would need public liability insurance. While there are similarities between the two types of insurance, they cover different areas and are designed to protect against different risks.

Key differences between public liability and employers liability insurance
Public liability insurance covers claims made by members of the public, whilst employers liability insurance covers claims made by employees
Employers liability insurance is a legal requirement for most UK businesses, whilst public liability insurance is not
Public liability insurance protects against damage or injury caused to a third party, whilst employers liability insurance protects against injury or illness caused to employees

 

It’s important to ensure that your business has the appropriate level of coverage to protect against potential risks and liabilities. Professional advice can help you determine the right coverage for your business.

Exploring employers liability: Coverage Comparison

Whilst public liability insurance is important for businesses that interact with the public, employers liability insurance is a crucial type of coverage for most UK businesses. It is designed to protect businesses against the financial strain that could arise from claims made by employees who suffer an injury or illness as a result of their work.

As a business owner, it is your responsibility to ensure the safety of your employees. Employers liability insurance can help give you peace of mind that you are protected against the financial impact of compensation claims. Without it, your business could face significant financial difficulty if an employee makes a claim against you.

Key differences between public liability and employers liability

While public liability and employers liability insurance may sound similar, they offer different types of coverage that are crucial for protecting UK businesses. Let’s take a closer look at the key differences between these two types of insurance policies:

Public Liability Employers Liability 
CoverageCovers liabilities that arise from interactions with the publicCovers liabilities that arise from employees’ work-related injuries or illnesses
ProtectionProtects the business from liability claims made by members of the publicProtects the employees from work-related injuries or illnesses and related claims
Policy and ClaimsCan be voluntary or mandatory depending on the business, with claims made by members of the publicMandatory for UK businesses with employees, with claims made by employees or their representatives

 

One key difference between public liability and employers liability insurance is the type of liability they cover. Public liability insurance covers liabilities that arise from interactions between the business and the public, such as slips, trips, and falls. Employers liability insurance, on the other hand, covers liabilities that arise from employees’ work-related injuries or illnesses.

Another difference is who they protect. PL insurance protects the business from liability claims made by members of the public, while employers liability insurance protects the employees from work-related injuries or illnesses and the related claims that may follow.

It’s important to note that, unlike public liability insurance, employers liability insurance is mandatory for UK businesses with employees.

It’s also worth mentioning that there may be some overlap in coverage between the two types of insurance. For example, a business may face a liability claim from a member of the public and an employees’ work-related injury claim at the same time. In such cases, both types of insurance policies would come into play to provide comprehensive coverage.

Given the different types of liabilities each insurance policy covers, it’s important for UK businesses to carefully consider their coverage options. While public liability insurance is essential for businesses that interact with the public, employers liability insurance is mandatory for those with employees. However, many businesses opt for both types of insurance to ensure they have comprehensive coverage.

Making Informed Decisions on Coverage

At Tradesman Saver, we understand the importance of choosing the right liability coverage for your business. That’s why we’re committed to providing UK businesses with the information and support they need to make informed decisions.

When deciding between public liability and employers liability insurance, there are several factors to consider. The nature of your business, the size of your workforce, and the specific risks and liabilities you face all play a role in determining the most appropriate coverage for your needs.

Public Liability Employers Liability 
Covers claims made against your business by third parties, such as customers or members of the public who are injured or suffer damage as a result of your business activities.Covers claims made by employees who are injured or become ill as a result of their work for your business.
May be suitable for businesses that provide services or sell products to the public, or interact with clients on a regular basis.Is legally required for businesses with employees, regardless of their industry or type of work.
Offers protection against the financial consequences of liability claims, including legal fees, compensation payments, and medical expenses.Offers similar protection and may also cover the costs of defending against claims made by employees.

 

Ultimately, the decision on which coverage to choose depends on your individual circumstances. It’s important to seek professional advice and review your coverage regularly to ensure it remains appropriate for your needs.

At Tradesman Saver, we’re here to help you find the right liability coverage for your business. With our tailored policies and expert advice, you can feel confident that you’re protected against the specific risks and liabilities you face. Contact us today to learn more.

For Public Liability and Employers’ Liability Insurance Policies, Choose Tradesman Saver

At Tradesman Saver, we understand that every UK business has unique liability risks and coverage needs. That’s why we offer tailored public liability and employers liability insurance policies that provide the right level of protection for your business.

With over 30 years of experience in the insurance industry, we have the expertise to offer advice and support to our clients. Our policies provide comprehensive coverage for a range of liability risks and protect businesses from financial damages and legal liabilities.

At Tradesman Saver, we are committed to supporting UK businesses. Our policies are affordable and flexible, with easy online quotes and access to a team of insurance specialists. We pride ourselves on delivering exceptional customer service and ensuring that our clients have the right coverage for their specific needs.

For all your liability coverage needs, trust Tradesman Saver to provide tailored, comprehensive protection for your business. Contact us today to discuss your options and get a quote.

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