Learn more about Public Liability Insurance with Tennyson the charity insurance experts

If your organisation comes into contact with the public (members, volunteers, non-members and other organisations) you should consider buying public liability insurance. This cover protects your organisation against claims which could be made against you for accidental damage to property and compensation for accidental injury to third parties, where you may be at fault.

If injury or damage does occur, and your organisation is responsible, a claim could be made against you. If the claim is successful, you would be liable for paying compensation unless you are insured.

Example

You are having a meeting in your building with lots of people present. During the meeting someone trips over a loose floorboard and breaks their leg. They accuse your organisation of poor maintenance of the building and successfully make a claim against you.

Who needs Public Liability Insurance?

It is difficult to think of an example of a group or organisation which does not need Public Liability Insurance. In fact, most of our clients have public liability insurance.

What does it cover?

Our Public Liability cover includes

• Cover for your volunteers
• Damage to third party property
• Damage to third party persons (injury)
• Products Liability
• Property Owners liability
• Legal costs

Please note that all insurers provide the same cover, if you have an existing policy it may not include all of these elements.

What does it not cover?

Public Liability does not provide compensation for your employees if they are injured at work, you will need Employers Liability (a legal requirement) to protect against this. Neither will it cover accidental injury which is not a result of your organisation’s negligence.

How much cover do I get?

The maximum amount the insurer will pay is limited in the policy: you take out cover to an agreed level of compensation. Common figures are £2m, £5m and £10m. Given the size of compensation awards being made, we consider that £2m is insufficient. Many Local Councils insist on at least £5m cover before awarding contracts and some now insist on £10m of cover.

What might it cost?

Insurers will assess the risk and calculate a price based upon the size and complexity of the organisation requiring cover. The main factors taken into consideration are your core activities and the risks they present. Large organisations can have policies that cost well above £10,000 and up until now small charities and community groups have tended to have to pay £200 or more such policies are now available on this website from £75.