As a wave of public liability claims continue to batter UK businesses, owners are warned of simple ways they could accidentally void their insurance and be left unprotected.
Government figures suggest nearly one in five businesses suffer a major disruption every year – 80% of which close down within 18 months.*
Business insurance protects against financial loss while undertaking business related activities and can range from commercial property insurance to professional indemnity, employer and public liability insurance – protecting the property, staff, their reputation and the public.
According to data from the Compensation Recovery Unit (CRU), public liability claims have surged over the last five years across England, Scotland and Wales. April 2023 to March 2024 saw 58,933 claims, rising to over 64,423 claims in 2024 –25 – with a year-on-year increase of approximately 10% for three consecutive years.**
Reflecting the increase in claims is a swell in demand for public liability policies. Quotezone witnessed a 30% spike from Q1 2023 to Q1 2024 and a further 14% boost from Q1 2024 to Q1 2025, as businesses hunt for cover.***
Greg Wilson, public liability insurance expert and CEO of Quotezone.co.uk, said: “It’s worrying to see public liability claims are steadily increasing year on year, likely a knock-on effect from current financial pressures and the rise of fraudulent claims.
“It is positive however to see companies respond with growing demand for public liability cover. It’s vital for companies to protect themselves and their assets. Business insurance covers all sorts of risks, such as disgruntled customers or damage to the business premises.
“It is important though for businesses to be careful not to accidentally invalidate their policy, it’s not uncommon for providers to deny claims if they feel the agreed terms have not been met.
“Simple things like keeping the provider up to date on any changes to the business, making sure the premises are secure and providing accurate details when taking out insurance helps ensure the cover stays valid and the business is protected.”
Quotezone.co.uk’s tips to help ensure your policy is valid:
1. Double check the detail
Insurance providers often have limited or generic descriptions to choose from when signing up your company. It is important to make sure you choose the option that most accurately describes your business, or seek advice from the provider. The wrong business description could invalidate your policy.
2. Take security seriously
If your business premises are broken into, you will likely need to provide evidence of forced entry. Training staff on security protocols is essential, making sure windows and doors are locked at all times and alarms are set.
3. Inform your insurer of any changes
Any changes to your business, for example a change of address, change of name or business functions, must be communicated to your insurance provider to make sure all details on your policy are accurate. Any new assets, change in earning, or employee numbers, should also be updated on your insurance policy, or your provider may refuse to pay out.
4. Keep up with maintenance
Part of taking out an insurance policy is making an agreement with your provider to keep a certain level of property maintenance. If you need to make a claim and your provider decides you have not been taking proper care of the building, the current claim and any future ones may be rejected.
5. Don’t delay on renewing
Procrastinating on your policy renewal forms can be costly, especially if you need to make a claim and find yourself uninsured because you left it too late to renew. Shop around and compare quotes as early as possible to ensure a competitive price.
6. Keep your provider in the loop
If something were to go wrong, the worst thing you could do is try and resolve it yourself without the help or advice of your insurance provider. If you decide to pay an unhappy client and then need to take action further down the line, this can harm your insurer’s position and make it less likely to get the result you want.
Businesses should check with their regulator and professional body to ensure all obligations are met and adequate protection is applied – Quotezone can help business owners compare and find savings on business insurance and all sorts of related products such as professional indemnity or public liability insurance