In Ireland's dynamic business environment, public liability insurance is essential for safeguarding enterprises against unforeseen incidents. This coverage protects businesses from claims arising due to injuries or property damage suffered by third parties on their premises. Given the potential financial and reputational risks, understanding and securing appropriate public liability insurance is crucial for business continuity.​

Importance of Public Liability Insurance

Public liability insurance serves as a financial safety net for businesses, covering legal costs and compensation claims. In Ireland, businesses face various risks, from customer slips in retail stores to accidents in hospitality venues. Without adequate insurance, these incidents can lead to substantial financial burdens.​

Between 2019 and 2023, the Injuries Resolution Board received over 30,000 public liability claims, with falls accounting for nearly 15,000 of these. Despite a 40% reduction in claim volumes during this period, the potential for significant claims remains a concern for businesses. ​

Moreover, the average cost of public liability claims has increased by 44% since 2019, reaching €20,979 in 2022.  This rise underscores the importance of having robust insurance coverage to mitigate financial risks associated with such claims.​

Benefits of Public Liability Insurance

Securing public liability insurance offers several advantages to Irish businesses:​

• Financial Protection: Covers compensation payouts and legal expenses, safeguarding business finances.​

• Legal Compliance: While not mandatory, having insurance demonstrates due diligence and responsibility.​

• Business Continuity: Ensures operations can continue without financial disruption from unexpected claims.​

• Reputation Management: Demonstrates a commitment to safety and responsibility, enhancing customer trust.​

In 2023, 68% of public liability claims were settled through litigation, accounting for 87% of the total cost of liability injury claims.  Having insurance helps businesses navigate these legal processes more effectively.​

How to Choose the Right Public Liability Insurance

Selecting appropriate public liability insurance involves careful consideration:

1. Assess Business Risks: Identify potential hazards specific to your industry and operations.​

2. Determine Coverage Needs: Evaluate the level of coverage required based on business size and risk exposure.​

3. Compare Providers: Research different insurers, comparing policy terms, exclusions, and premiums.​

4. Seek Professional Advice: Consult insurance brokers or advisors for tailored recommendations.​

It's important to note that certain sectors, such as community and sports groups, have experienced reduced availability of public liability insurance, highlighting the need for proactive policy selection.

Tips for Business Owners

To minimise the risk of public liability claims:

• Maintain Safe Premises: Regularly inspect and address potential hazards.​

• Implement Safety Protocols: Train staff on safety procedures and emergency responses.​

• Document Incidents: Keep detailed records of any accidents and the measures taken.​

• Engage with the Injuries Resolution Board: Utilise their services for efficient claim resolution, as consent and acceptance rates have improved, with 54% consent and 57% acceptance in 2023. 

By adopting these practices, businesses can reduce the likelihood of claims and demonstrate a commitment to safety.

What next?

Public liability insurance is a critical component of risk management for Irish businesses. It provides financial protection, supports legal compliance, and helps maintain business operations in the face of unforeseen incidents. Given the potential costs and legal complexities associated with public liability claims, securing appropriate coverage is not just prudent—it's essential.​

For personalised advice and comprehensive coverage options, consider consulting with insurance professionals who understand the unique needs of your business sector.​

If you are looking for affordable, comprehensive cover, consider Dolmen Insurance. Get in touch today to discuss all your insurance options and explore the benefits of working with Dolmen Insurance. Whether it's Commercial Insurance Mortgage Protection to Life Insurance, Home insurance or Car insurance we have you covered.

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