Public liability insurance covers any compensation claims that are made against you if someone has been injured or their property has been damaged as a result of something that you have done or something that you have failed to do.
As well as covering any compensation awarded, this type of insurance also covers any other associated costs and expenses such as the legal costs incurred in the handling of the claim.
Compensation claims can be expensive to settle. Even a relatively minor claim can cost £1,000 to settle. A claim for a broken wrist could cost in the region of £20,000 and it is common for claims for serious injuries, such as spinal injuries, to cost well in excess of ten times that amount.
There are also complex legal issues to consider to determine whether you’re legally liable to pay compensation to the claimant. Public liability insurers have fully trained teams that can handle the legal issues on your behalf.
Anyone who comes into contact with members of the public needs to ensure that they have public liability insurance to protect them against any compensation claims that are made against them, and that includes people who are providing holistic services.
People who are providing holistic services should make sure that their holistic insurance policy covers financial losses and medical malpractice, though, because often a standard public liability insurance will not cover those risks. They should also consider products liability insurance.
Financial loss cover
A standard public liability insurance policy covers compensation claims that involve a bodily injury or property damage, but will usually exclude any compensation claims where there has been no injury or damage and the claim is for purely economic losses.
A financial loss cover extension addresses this issue by providing cover for this type of claim.
Medical malpractice cover
Another limitation of a standard public liability insurance policy is that it will usually exclude any compensation claims arising out of professional activities. This means that many of the claims that could be made against someone providing holistic services will not be covered unless the policy has a medical malpractice cover extension,
Products liability insurance
Public liability insurance covers claims arising out of something that you have done or failed to do, but does not cover claims arising as a result of a defect in something that you have sold or supplied.
If you are giving or selling any products to your clients you need products liability insurance to cover any compensation claims that those products cause. Products liability insurance is usually bought as part of a public liability policy.