Starting a business in Ireland comes with many responsibilities. From hiring staff to managing finances, business owners navigate countless decisions. One decision that employers sometimes overlook comes in the form of Public Liability Insurance (PLI). Nevertheless, this kind of protection plays a crucial role. In fact, no business truly operates free of risk. Therefore, every business, whether a restaurant in Kerry or a hotel in Galway, should seriously consider PLI. Because accidents happen. Because claims cost money. Because peace of mind matters. Below, we explore why PLI matters, its benefits, how to choose the right cover, and useful tips for business owners.

Importance of Public Liability Insurance

Understanding the Risk

Every business opens its doors to customers, clients, colleagues, or the general public. This exposure brings risk. For example, a customer might slip on a wet floor in your shop. Or a delivery person might trip over a cable at your premises. These incidents can lead to injuries or property damage. When they do, your business may face legal claims, even if the accident seems minor.

In Ireland, public liability claims have become more common. According to data from the Central Bank, between 2019 and 2023, the number of PLI claims submitted to the Injuries Resolution Board dropped from 8,003 to 4,795, a 40% decline, but they remain significant. Despite the drop, many claims still hit businesses each year. They can result in substantial awards and legal costs. For instance, during that period, the Injuries Board assessed over €178.5 million in compensation. That’s almost €36 million per year. In 2023 alone, they issued €33 million in awards.

Also, while the volume of claims has dropped, certain sectors remain vulnerable. Café, hotel, and restaurant claims fell by over 50%. Meanwhile, claims involving residential institutions rose by 22%, largely due to unfortunate incidents during the pandemic. Finally, falls account for 62% of PLI accidents. That highlights everyday risks in day-to-day operations.

Financial Exposure of Settlements

Let’s look at how expensive PLI claims can be. According to Central Bank figures, the average PLI compensation awarded via litigation in 2022 reached €37,045. In contrast, Personal Injuries Assessment Board (PIAB)-assessed cases averaged €21,439. Litigation adds massive pressure. Legal fees can skyrocket. In fact, lawsuits dominate financial pay-outs and costs. Furthermore, it was reported in the Irish Times more than two-thirds of PLI injury claims in 2023 resolved only after litigation, accounting for 87% of pay-out costs. That tells us: if your business lacks cover, a single accident could cause severe financial loss.

In summary, a typical slip-and-fall can cost €20,000–€40,000 or more. Taken together, Irish businesses face large-scale financial exposure from everyday mishaps.

Legal and Reputational Risks

Beyond money, PLI claims bring legal and reputational consequences. Even if your business contests liability, the legal process consumes time and attention. Meanwhile, customers and the public may perceive your business negatively. News travels fast. One accident can damage a brand’s reputation. Losing customer trust can also hit bottom-line performance over time.

At the same time, without PLI, customers or suppliers may decline to work with your business. Many contracts and supplier agreements now require proof of PLI. In competitive markets, failing to have such cover can mean missed opportunities.

Benefits of Public Liability Insurance

Now that we’ve set the scene, let’s explore the specific benefits PLI brings to Irish businesses.

Financial Protection Against Claims

First and foremost, PLI pays out damages if your business is legally liable. It also covers associated legal costs, which can be enormous. Given the average PLI compensation in Ireland, a small business could lose its financial stability overnight without cover. Fortunately, PLI policies protect against those scenarios.

Peace of Mind to Focus on Growth

When you know potential claims carry insurance coverage, you can focus more on core business goals. Whether opening a new store, launching a service, or hiring staff, you can proceed with less stress. Peace of mind boosts confidence and improves decision-making.

Market Credibility and Trust

Clients, landlords, contractors, and business partners often ask for proof of PLI. Holding a robust policy signals professionalism. As a result, partnerships open more easily.

Support in Case of Accidents

PLI isn’t only about money. Many insurers provide support services, investigations, expert witnesses, legal advice. Instead of scrambling when an incident occurs, your insurer steps in to manage the process. Consequently, you reduce mistakes and respond effectively.

Tailored Cover to Suit Specific Needs

PLI comes in flexible packages. Depending on your sector, you might include product liability, completed operations cover, or tenant’s legal liability. Whether you run a construction firm, a coffee shop, or a consultancy, you can tailor cover to your exposure. As such, you avoid paying for irrelevant protections while securing comprehensive defence where needed.

How to Choose the Right Public Liability Insurance

After understanding the why, most business owners ask: how do I choose the right PLI? Selecting the correct policy takes more than picking the cheapest premium. You must consider coverage limits, exclusions, insurer reputation, and service quality.

Here’s a step-by-step guide.

1. Assess Risk Level

Begin by identifying key risks in your business. Ask:

• Do customers visit your premises?
• Do you engage in physical work?
• Do third parties inspect or transport your goods?
• Are you contractually required to have cover?

Also, map hazards like slip-and-fall, falling objects, product defects, or workplace accidents. Understanding risk helps set an appropriate indemnity limit—frequently €6.5 million to €13 million in Ireland for SMEs.

2. Compare Coverage & Limits

PLI cover varies by insurer. While one policy might cover slips, another might include product damage. Pay attention to:

• Indemnity limits (max pay-out)
• Aggregate vs. per-claim limits
• Defence costs inclusion (most policies cover legal fees “in addition”)
• Geographical limits some policies apply worldwide; others only in Ireland/UK.

3. Check Insurer Reputation

Look for insurers with strong claim payment records and efficient processing. Dolmen Insurance can help here by presenting strong providers. Also, read professional reviews and broker feedback. According to Brokers Ireland and CCPC, 72% of PLI buyers in Ireland use brokers to get the right policy.

4. Understand Premium Drivers

Several factors influence PLI premiums:

• Claims history — recent claims push prices higher.
• Industry sector —  some businesses carry higher risk.
• Turnover size — more people through premises often means more risk.
• Mitigation measures — premises maintenance, safety signage, training.
• Location — urban premises may cost more than rural ones.

5. Review Policy Exclusions

Exclusions vary by insurer and policy. While one insurer might exclude claims arising from a subcontractor, another might allow broad coverage. Always check fine print, including exclusions for asbestos, cyber risks, or abuse-related claims. Dolmen Insurance experts can guide you here.

6. Examine Service & Support Levels

Policies often come with differing service levels. Some insurers provide 24/7 claims lines, while others delay. Speed and quality matter. For example, insurers willing to use PIAB channels often resolve cases faster and cheaper. Central Bank data shows PIAB settlements cost less and conclude quicker than litigation. Ask about PIAB claims handling.

7. Consider Package Policies

In Ireland, 84% of policies sold in 2020 combined employers’ liability, PLI, and commercial property insurance. Bundling these lines simplifies purchasing and may reduce overall cost.

8. Plan for Renewal & Updates

Your business risks evolve. For instance, if you add an e‑commerce component or subcontractors, inform your insurer. Also shop around each renewal, even small increases can add up. Premium inflation was a major concern: PLI profits reached 13% margins in 2024, much higher than industry targets of 4–6 % . Renewals are the perfect time to ensure costs remain fair.

Tips for Business Owners

Below are practical tips to help business owners manage risk and make the most of PLI.

1. Document Safety Procedures

Keep records of regular safety inspections, cleaning routines, staff training, and signage. That documentation acts as a defence in case of a claim.

2. Train Staff Regularly

Ensure staff understand their duty of care. Simple act like keeping floors dry and cordoning off hazards can prevent accidents.

3. Act Immediately After Incidents

Notify your insurer as soon as something happens. Delay can complicate investigations and claim handling.

4. Embrace PIAB Disputes

PIAB is cheaper and faster than court proceedings. Policies that actively support PIAB claims save time and cost.

5. Monitor Emerging Risks

Stay aware of new liability exposures. Environmental clean-up, cyber breaches, and product recalls may soon demand additional cover.

6. Stay Competitive

Don’t assume renewal premiums are non‑negotiable. Use renewal time to compare quotes. A small saving every year can amount to many thousands over time.

7. Conduct Annual Risk Reviews

Review premises, contractors, and operations yearly. Adjust cover to match current business profile.

8. Be Transparent with Brokers

Tell your broker everything relevant, even if it seems trivial. Full disclosure keeps your policy valid and ensures you are fully covered.

9. Promote Safety Externally

Display “wet floor” or “caution” signage visibly. Show customers you take safety seriously. That transparency also enhances brand reputation.

10. Recognise the Limits of PLI

Remember, PLI covers third‑party injuries and property damage. It doesn’t cover employee injuries (that's employers’ liability) or job defects (that’s product liability). Know what’s included, and add separate covers when needed.

Time to talk to the experts.

Public Liability Insurance may seem optional until you face a real claim. Irish data shows an ongoing risk: thousands of claims submitted yearly, millions paid in settlements, and major legal costs. Indeed, average pay-outs often exceed €20,000. Many cases proceed through litigation, and legal costs drive up compensation totals.

For Irish businesses, PLI offers protection and peace of mind. It helps absorb unexpected financial shocks while supporting safety and professionalism. Moreover, choosing the right policy empowers growth, protects reputation, and meets contract requirements. Above all, PLI is about safeguarding your livelihood and ensuring your business remains resilient in the face of accidents.

Ultimately, every business owner in Ireland should ask: “What would happen if someone got injured on my premises tomorrow?” If you’d struggle to pay, it's time to secure PLI. Contact Dolmen Insurance today. Our business insurance experts can tailor a solution that matches your needs, so you can focus on running your business, not worrying about what might go wrong.

If you are looking for affordable, comprehensive insurance cover, consider Dolmen Insurance. Get in touch today to discuss all your insurance options and explore the benefits of working with Dolmen Insurance. 

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Note: The information provided in this article is for general guidance purposes only and does not constitute professional advice. For personalised insurance recommendations, please consult with our qualified insurance advisor.