(PPL) Products and public liability insurance is an insurance policy which covers a business following a claim for financial compensation. This can result from a customer, member of the public, even a passer-by making a claim if they are injured or their property or possessions are damaged as a result of your business activities.
Do I need it?
Currently, products and public liability insurance is not a compulsory legal requirement. However, it can be observed as an essential requirement to protect your business from unnecessary financial loss.
Products and public liability claims against businesses are increasing year on year. Free access to ‘no win, no fee’ legal services have increased the chance of your business experiencing a PPL insurance claim, which then begs the question, why take the chance?
Situations where PPL insurance may be beneficial are: selling online, selling or teaching face to face and selling at craft fairs/events or parties. Please check that your insurer covers you for all countries that you wish to sell to, especially USA and Canada.
If you work from home you will need to inform your current house buildings insurer as there may be clauses in your policy excluding jewellery making or the use of heat on the premises.
How does PPL benefit me?
PPL Insurance covers your business from potential financial loss occurring from a claim for financial compensation. Even if a claim for financial compensation is not successful, the legal fees alone are often financially damaging to a business.
How does PPL benefit the public?
Here common sense prevails, using a business which has PPL cover reassures the consumer that the company being used can meet the cost of a claim along with legal expenses. Many companies and exhibition organisers will insist on their suppliers and exhibitors having public liability insurance cover in place.
What are the chances?
As with any day to day activities, despite anyones best intentions, accidents happen and there is always the possibility of your product causing damage or injury. PPL insurance covers the cost of correcting any damage to, or replacing broken property, loss of earnings, medical fees for injuries to your client and the claimants legal expenses.
A simple example of claims could include a member of the public claiming against your business should they trip up and cause injury or damage on your property and, looking closer to home, an item of jewellery causing damage to clothing or causing physical harm. The scope for claims is astronomical.
How do I purchase PPL Insurance?
A quick Google search will show results for a number of companies offering PPL insurance both at hobbyist or professional level but not all policies will cover your particular niche market, for example, some policies may cover crafts but exclude jewellery making, so it’s wise to read the full particulars of a policy to determine if it meets your requirements. No craft business is exactly the same so the cost of insurance will vary as there are many different options and you need to choose what is right for your individual creative business. Another port of call could be your current insurance broker but specialist insurers could prove to be more cost effective, especially if offered as part of membership through a jewellery organisation.
Don’t assume you will be safe without product and public liability insurance when running a small business. Something as simple as coffee spilt over a client, could cost you thousands if you’re uninsured. Having PPL insurance leaves you with the peace of mind that, if such a claim arose, your business remains financially secure.
How much PPL insuance cover do I need?
It’s up to you to decide how much cover you need dependant on the type of work you do and the possible scale of a claim against you if something goes wrong. At a minimum, £2 million would be a starting point but £5 million would be a good level of cover to have.
Public liability insurance for jewellery and craft makers covers the cost of claims made by members of the public for incidents that occur in connection with your jewellery or craft business activities. Public liability insurance covers the cost of compensation for: personal injuries, loss of or damage to property.
Product liability insurance for jewellery and craft makers protects against claims of personal injury or property damage caused by products sold or supplied through your business. It is designed to help protect your business by ensuring that if this happens, legal or court costs are covered.
Ultimately, it’s up to you to decide whether your business needs public liability insurance, although it’s worth thinking about whether you could afford to meet the cost of a compensation claim if your business was sued and you didn’t have cover.