Types of Liability Cover You Should Include On Your Shop Insurance Policy

If you own a shop, you may be required by law to have sufficient liability insurance.  Most commonly you will be required to have public liability insurance, but there are other types of protection that are advisable, particularly if the public, customers or clients visit your premises.

Keep reading to learn more about the three types of liability insurance that you should include on your shop insurance policy.

Public Liability Insurance

Public liability insurance is designed to protect you against claims made by members of the public who have suffered injury or damage to property in connection with your business. If a member of the public is injured on your property you may be held responsible. For example, a customer might slip on your wet shop floor.

Public liability insurance is designed to pay compensation to the claimant.  This may include loss of earnings, future loss of earnings and damages in addition to your legal costs in defending the claim.  It will also cover the claimants’ legal costs that you will have to pay if you are found to be at fault.

Public liability claims are often made as a result of an accident at your business premises.  However, claims can also be made outside of this space – for example when you are on a sales visit. Some customers or clients may also require you to present proof of public liability insurance before they work with you.

You will normally find that public liability cover will be for a minimum of £2 million.  In some cases it can be higher depending on the nature of your business.

Products Liability Insurance

Products liability insurance cover protects you against injury to your customers and damage to their property as a result of a product you sell or supply.

People injured by defective products may have the right to sue for damages.  For example, a products claim might arise if you run a grocers shop and accidentally cause food poisoning by selling out of date products.  You could be found responsible and have to compensate your customer.

Property Owners Liability Insurance

If you own your shop premises, this cover might be important.  Property owners liability insurance covers you against injury or damage suffered by a third party whilst visiting the property you own. An example of an incident where a Property Owners claim might arise is where a postman trips and falls on a broken step whilst at your property.

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