Public liability insurance covers a business and professionals against damages awarded against them in the case of profession error or an act of negligence towards a third party.
However, it appears that many businesses, especially those which are small, struggle to pay for public liability, such as charities like 'Grow and Go', who would have been shut down, if it wasn't for a sports team who helped pay for their public liability insurance.
The above struggle is a familiar story for a female entrepreneur who benefited from a fund for business women, using it to pay for the public liability insurance, which allowed her to run her educational business.
Kate Jackson, of Bungay, took an £850 loan from the Women's Employment and Enterprise Training Unit (WEETU) for public liability insurance in the first year she set up her Minimonsters Creepy Crawly Road show. Jackson has repaid the money with interest and expressed her gratitude to the WEETU for helping her get her business up and running. She stated: "I would have struggled to get into business if it hadn't been for them."
Meanwhile, a judge has awarded damages against the owner of a horse which was 'spooked' and when it bolted caused a traffic accident. The case shows the growing interest in public liability, but there are fears that it could put rural livelihoods at risk, as it could expose farmers who allow their animals to graze along side roads. In this particular case, the judge awarded damages, stating that the owners were liable for the horse's actions, despite having taken precautions. The judge further commented that in various areas where sheep and ponies roam free, they often cross narrow roads, and he wondered whether a car accident resulting from such a regular crossing would be subject to a claim.
There are also concerns for small business or individuals who own holiday home properties to purchase public liability insurance. According to the AA, the property owners also stand to benefit from better deals if they take out this insurance form UK companies rather than companies from overseas, as they may not provide standard items such as flood cover.
AA Public Relations Manager Ian Crowder stated how he harboured concerns that if a homeowner suddenly got a call from people staying in their house saying "Something terrible has happened - We've had a bit of a fire in the kitchen" then the owners need to get out there and sort the problem out straight away.
Crowder also used another example "Or there has been a burglary and the police contact you and say:Your home has been burgled, then you can jump on a plane and get out there and you would get emergency travel cover for up to £1,000."
The manager also said that property owners stand to get better premiums especially if their holiday properties are in a complex of a dozen to 15 holiday homes with security guards and CCTV.
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