What is the Difference Between Public Liability and Employers Liability Insurance?
When you’re an owner of a business, there’s always some risk of someone suing you, so if you want to protect your business, especially if it’s a small one, getting an insurance plan would be a good start.
If you would like to read more information or learn more about the pricing of business insurance, you can do so here .
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What is the Difference Between Public Liability and Employers Liability Insurance?
When you’re an owner of a business, there’s always some risk of someone suing you, so if you want to protect your business, especially if it’s a small one, getting an insurance plan would be a good start.
Public liability and employer’s liability are the most common type of insurance that people get for their businesses. It can be difficult finding out which insurance to get for your company, and you may have several questions in your head regarding which one would be better for your business to get or should you be getting both of them or sticking to one? Read on below to find out the details and differences between these two insurances.
What are Public Liability and Employers Liability Insurance?
Technically, both these types of insurance work in a manner of covering and helping in compensating when a claim is made against your business. The main difference that sets these two apart is who the claim was made by.
Public liability comes into play when the claims of injury or damage are made by a third person, i.e. a custom client. This is the insurance essential to get if your business consists of being in contact with the public a lot, for example, salons, restaurants, etc.
On the other hand, an employer’s liability is valid when it’s an employee who’s claimed your business. The owner needs to make sure your employee’s work is safe for their health. So in cases of accidents involving the workers of your business, the employer’s liability insurance is what covers the compensation and legal fees. However, this insurance does not cover employees’ lawsuits involving discrimination, sexual harassment, or unjust termination.
So basically, when an incident resulting in a person’s physical or property harm happens, it will depend on who is claiming against your business. You will be covered by public liability insurance if it’s a third party. If it’s one of your employees, you would have to claim the employer’s liability insurance.
Will public liability insurance cover employees?
The answer to this question would be no. Public liability insurance will not cover your business if an employee makes a claim. For this, you will need the employee’s liability.
Is it necessary to buy public liability insurance and employer’s liability insurance?
In terms of legality, it’s a requirement to have employers’ liability insurance, whereas getting public liability insurance depends on you.
So, if you own a business, it is required by law that you have employer’s liability insurance for your employees, including volunteers, temporary workers, and even students. It’s important to know that you will get fined for it every day if you do not get the employer’s liability insurance. However, there are some exceptions where you don’t have to get the employer’s insurance, such as you being the sole employee or if the workers are your close family.
The law does not require public liability insurance; however, if you have a business that involves contact with the public, it would be wise to buy it and think of it as an investment in case an accident happens.
What is the cost for public liability and employees liability insurances?
The public and employees insurances can be bought together as a package or separately depending on your requirements.
The price that both the insurance can be bought for depends on numerous factors, including; the area where your business is located and its size, the type and nature of your industry, the health and safety records, etc.
Both the public and employer liability insurances have their benefits that will only help you not to be broke and your business going down. You have no choice but to get the employer’s liability insurance as it’s required by law, but it’ll be a smart move if you buy the public liability insurance as well.
What is the Difference Between Public Liability and Employers Liability Insurance? To Conclude
So what is the Difference Between Public Liability and Employers Liability Insurance? These insurances will protect you when you’re being sued and cover the costs of most of the things you would otherwise have to pay from your pocket. Getting a team of lawyers can be very expensive, so to save yourself from being bankrupt when you’re in trouble, you can buy insurance to help you in such difficult times.
Find out more about the importance of insurance here .
Other useful links about Business Insurance:
Is Buildings Insurance a Legal Requirement?
What is Buildings and Content Insurance?
What is the Importance of Public Liability Insurance?
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