Public liability insurance could be the most important cover you have. Not only does it pay out for claims that could otherwise topple a successful business but in many cases not having it would put customers and partners off using your services.

In fact, many sole traders and SMEs now advertise the fact that they have public liability insurance so customers feel safe (a) in their premises or (b) if a tradesman (e.g. plumber) is undergoing work in their home.

Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities.

Public liability insurance covers the cost of compensation for:

• personal injuries
• loss of or damage to property
• death

Policies vary from insurer to insurer, but most public liability policies cover you for:

• incidents that occur on your business premises
• incidents that take place off-site, at events or activities organised by your company