Unlike employers liability insurance, which you are required to have by law if you or your business employs anyone, Public Liability Insurance (PLI) is not currently a legal requirement. However, it is an essential insurance cover that should form part of your business. Insurance protects you, your business and your customers. There is an expectation that any professional wedding business will have valid public liability insurance and many venues ask for proof of insurance before working with a supplier.
What is Public Liability?
Public Liability is a type of insurance cover that provides protection for a business and wedding couples if a third party suffers an injury or third party property damage is caused as a result of their business or personal activities. The insurer would assist in defending the claim as well as proactively managing the claim to cover any compensation payment plus any legal expenses due. There are various limits available from £1m, £2m, £5m and £10m.
Why do you need Public Liability?
You'll need Public Liability Insurance for Wedding Fairs:
As a wedding business, attending a wedding exhibition or wedding fair is an important part of promoting your business. In the majority of cases you will be required to carry Public Liability insurance in order to attend. This is due to the fact that typically the locations will be of historical significance or have a high footfall of visitors and guests. Whilst the risk of causing injury or damage to third party persons or property is limited, the fact that things can and do go wrong combined with the contract terms means that you will need to prove that you hold relevant Public Liability insurance to attend. If the worst was to happen then the insurance company would step in to manage the claim on your behalf. In the absence of a valid insurance policy then realistically a claim could put you out of business.
You'll need Public Liability Insurance as a sign of Professionalism:
As a business you win and retain customers on the strength of your professionalism, expertise and reputation. Unfortunately, no matter how good and competent you are as a business, incidents can arise at any time and if handled incorrectly can jeopardise all that you have worked for. With the right insurance in place not only does it project an air of professionalism, it also assists with managing the resulting fall out ensuring that any compensation or damages due are settled in good time by the insurance company.
You'll need Public Liability Insurance to Reassure Clients:
From a sales and marketing viewpoint, customers are also more likely to engage businesses to carry out work for them if they have the added safety net of insurance as this provides a fall-back position should the worst happen.
You'll need Public Liability Insurance for Peace Of Mind:
As a wedding business owner your main focus should be on servicing your clients and growing your business not having to worry about the threat of a claim or having to manage a claim yourself. As we live in a litigious society it is prudent to manage the risk proactively and a Public Liability policy will cover the legal liability of a business thus providing peace of mind should the worst happen. As already discussed, in the absence of a valid insurance policy then realistically a claim could put you out of business.
Where can I buy Public Liability Insurance?
Any business insurance agent will be able to advise you on a suitable policy for your business and supply suitable quotations so that you can assess the right package for your needs. There are a number of specialist wedding insurance companies, and they may have a better understanding of the intricacies of the industry.