General Public Liability Insurance in Cyprus in 2024. Affordable general public liability insurance in Cyprus.

General Public Liability Insurance in Cyprus

When signing deals with large international companies, Cyprus-based companies are under a contractual obligation to purchase insurance from a reputable provider.

International companies will usually require the acquisition of both general public liability and professional indemnity insurance.

Additionally, companies in the technology sector may be required to carry multimedia and cyber insurance.

In this guide to general public liability insurance in Cyprus, we will explain what this type of insurance covers and how it works.

In addition, we will give you some tips on how you can save on your general public liability insurance.

Table of contents

What is general public liability insurance?
General public liability insurance coverages in Cyprus
What does public liability insurance not cover?
Public liability insurance vs general liability insurance
Examples of public liability claims
General public liability insurance and product liability insurance in Cyprus
General public liability and professional indemnity insurance in Cyprus
Employers and general public liability insurance in Cyprus
Freelancer public liability insurance
General public liability insurance cost in Cyprus
Affordable general public liability insurance in Cyprus
Best general public liability insurance in Cyprus
General public liability insurance quote in Cyprus

What is general public liability insurance?

General public liability insurance refers to business insurance that covers claims made by the general public (i.e. clients and visitors).

This insurance type will help to pay for any medical expenses and other costs resulting from injuries, death, and property damage involving your business.

General public liability insurance covers claims regardless of whether the accident occurred inside or outside the company’s premises.

General public liability insurance in the EU and the USA is usually part of an umbrella contract called a “business insurance contract” or “business owners contract”.

Most business insurance contracts include:

General public liability insurance
Product liability insurance
Employers liability insurance
Contents and premises insurance

General public liability insurance coverages in Cyprus

The core of general public liability insurance comprises the coverage of “premises liability insurance” or a simple “public liability insurance”.

Premises public liability insurance only comes into effect when an incident occurs inside your company’s premises (e.g. offices, shops, points of sales, or factories).

Premises liability insurance in Cyprus is either sold as part of a “business owners contract” or as additional coverage on a traditional “employers liability insurance” contract.

This coverage is rarely sold as an independent policy.

In Cyprus, it’s possible to extend your premises liability coverage (i.e., incidents happening inside your premises) to general public liability coverage (i.e., incidents happening inside and outside your premises).

This process mentioned above requires an in-depth assessment of your company’s activities.

What does public liability insurance not cover?

Public liability insurance doesn’t cover the following circumstances:

Professional errors and negligence. These claims are covered under professional indemnity insurance.
Employer’s injuries while they’re working inside or outside of the premises of your company. These claims are covered under employers liability insurance.
Claims from your client related to cyber risks. Your client or customer can file a claim against your company if they suffer a loss due to a cyber-attack attributed to a professional mistake your company made. These types of claims are covered under cyber insurance.

Public liability insurance vs general liability insurance

Is public liability insurance the same thing as general liability?

Public liability insurance (or premises liability insurance) covers claims only related to incidents happening within the premises of your company. In contrast, general public liability insurance covers claims outside the premises of your company.

Public liability insurance vs commercial general liability

Commercial general liability insurance is identical to general public liability insurance.

Commercial general liability insurance always includes product liability insurance, while general public liability insurance might not include product liability insurance (it is usually an additional coverage).

Examples of public liability claims

The following incidents commonly result in public liability claims.

Falling and faulty objects.
Falling, slipping, and tripping over.
Building and construction claims.
Issues with defective products.

Falling and faulty objects

One of the most common reasons for public liability claims is caused by falling objects and faulty fixtures. Sometimes, falling objects are suspended on a wall.

For example, parts of suspended lighting that fall from the ceiling, a piece of wall art held by old wires, or a mirror that detaches from the rusty nails that held it in place.

Whether it’s something that fell from a height, or a faulty fixture that causes a scene, these accidents can create severe injuries and property damage resulting in claims against you.

Falling, slipping, and tripping over

Accidents related to falling, slipping, and tripping over are among the leading causes of public liability claims.

These types of accidents affect every industry and happen under varying circumstances. Not only do these accidents cause personal injury, but they also cause damage to third-party property.

The most widely known reasons for these accidents are spillages on floors, the failure to use signage to indicate a wet floor and broken flooring.

Building and construction claims

Incidents occurring from errors on building and construction sites often involve severe injuries, damages, and serious claims.

These claims are more common in the construction industry. However, all industries face building and construction failure claims. If you lease your company premises, you may be responsible for building failures that cause an injury on the property.

If you are renting an office, you must identify potential hazards and report them to the owner of the building.

Issues with defective products

If your business manufactures or sells products (or both), it’s reasonable to assume you may face liability claims resulting from defective products.

Any product defect could result in a personal injury claim against your company.

In some cases, claims might be raised due to defective products, even if your business doesn’t manufacture or sell products.

For example, suppose a client gets injured in your office due to a faulty chair and takes legal action to sue you. In that case, public liability can cover any legal and compensation costs.

General public liability insurance and product liability insurance in Cyprus

Most insurance companies provide the following policies in one business insurance contract.

Products liability
Employers liability
General public liability

There are fundamental differences between public and product liability insurance; they are not the same coverage.

Product liability insurance is usually not sold on its own, and most insurers in Cyprus provide it as part of general public liability insurance or business insurance (as mentioned above).

General public liability and product liability insurance cover third-party injury or property damage claims. However, each contract will react under different circumstances.

General public liability insurance reacts in the circumstances related to the delivery of your company’s services, while product liability reacts in the circumstances pertaining to products you have manufactured, supplied, or sold.

Let's analyze in detail the differences of the coverages of these two insurance products.

General public liability insurance

Public liability is in place to protect you if you cause injuries or property damages to a third party while delivering your services.

For example, if a wire on your office floor results in an accidental client injury, this could result in a public liability claim.

Covers third-party liability and legal expenses.
It’s not required by law, but certain client contracts may need it.
It’s suitable for many companies and invaluable for construction workers.
Bodily injury allegations or property damages due to your services cause claims.
The incident related to the claim must occur while the insurance contract is active (claims-occurring).

Products liability insurance

Product liability is in place to protect you if you cause third-party bodily injuries or damage to a client’s property because you sold them faulty products. Manufacturing or design defects or inadequate warnings can result in faulty product claims.

For example, suppose a toy manufacturer sells a defective toy without warning signs and a child is injured while using it. This oversight will activate product liability insurance.

Covers third-party liability and legal expenses.
It’s not required by law but can be a lifeline if a claim arises.
All companies that sell or manufacture products can benefit from this coverage.
Bodily injury allegations or property damages related to your products can cause claims.
The incident related to the claim (at the time of damage or injury, not when the sale was made) must occur while the insurance contract is active (claims-occurring).

General public liability and professional indemnity insurance in Cyprus

Companies based in Cyprus usually acquire general public liability insurance from a reputable provider when signing a deal with a large international company.

In these cases, international companies often ask their associates to obtain general public liability and professional indemnity insurance when cooperating with them.

Difference between general public liability insurance and professional indemnity insurance

The main difference between general public liability and professional indemnity insurance is that public liability insurance is designed for claims made by members of the public for illness, injury, or damage, while professional indemnity is tailored for claims made by clients for professional mistakes or negligence.

In other words, public liability insurance covers claims related to non-professional accidents, whereas professional indemnity insurance covers claims related to professional errors and omissions.

Examples of a public liability and professional indemnity insurance claim

Public liability: A business owner accidentally spills a drink on a client’s laptop resulting in a public liability damage claim.
Professional indemnity: A lawyer breaches his client’s confidentiality, resulting in losing money and a professional indemnity claim.

Employers and general public liability insurance in Cyprus

Employers liability insurance is obligatory in Cyprus, and the minimum coverage is €160,000 per employee.

What are the differences between employers liability and public liability insurance?

The primary difference between both of these types of insurance is in what circumstances these coverages go into effect and who might file a claim.

General public liability handles claims from third parties (e.g. clients and visitors), and employers liability covers claims from employees injured at work.

Employers’ liability insurance will go into effect if someone inside your company files a claim.

Public liability insurance will go into effect if someone outside your company files a claim.

Employers liability insurance Cyprus

This type of insurance is designed to protect your business from employee claims for work-related illnesses or injuries.

You are responsible for your employees’ well-being, health and safety while they are at work.

Employers’ liability insurance ensures you don’t need to pay out-of-pocket legal defence or compensation costs if one of your employees needs medical treatment and time off work.

Do I need employers’ liability and public liability insurance?

This answer depends on your needs. From a legal standpoint, employer liability insurance is required by Cypriot law (if you hire staff), whereas public liability insurance is not.

Does public liability insurance cover employees?

Public liability insurance is only valid for claims made by a member of the public or a client of yours. It does not cover you for claims made by employees. You need employers’ liability insurance to cover your staff.

Freelancer public liability insurance

Freelancers or one-person companies in Cyprus, especially those in the technology sector, are commonly obliged to acquire general public liability and professional indemnity insurance.

The above is the standard procedure if you start cooperating with a large USA, UK or EU technology company.

Unfortunately, public liability insurance contracts in Cyprus are overly expensive compared to the limited turnover of these small companies.

The average price of business insurance contracts in Cyprus, including general public liability insurance Cyprus and professional indemnity insurance, is €3,200. This premium is for freelancers with a turnover of €50,000 - €250,000.

The minimum premium for this type of contract in Cyprus is €1,150.

At Pitsas Insurances, we have decreased the minimum premium to €650, and we aspire to bring that price down to €250, which is the EU’s average minimum premium.

General public liability insurance cost in Cyprus

The premiums for commercial general public liability insurance are calculated by weighing up many factors, including the following:

Your annual turnover.
Your business activities.
The underwriter’s rating.
Your clientele and contracts.
Whether there are any guarantees.
The warranties as defined by your policy.
The territorial limits as determined by your policy.
The type of product you manufacture or provide.
Value of products produced or sold within the year.
Whether the products are installed or demonstrated.
Whether any products are sold under the label of others.
Whether any products were recalled, disconnected or changed in the past.
Whether any products of others are sold or repackaged under your label.
Whether you conduct product research and development or have new products planned.
What countries/jurisdictions you provide your services to (services in the USA and UK always increase the premium).
Your claims history.

Affordable general public liability insurance in Cyprus

Pitsas Insurances is the largest provider of business insurance contracts in Cyprus and the largest insurer of technology companies.

Our company cooperates with the most prominent international underwriters (Munich RE, Zurich Insurance, Markel Insurance, Swiss RE) and all with local underwriters.

Due to the large number of contracts we handle and the excellent relationship with all underwriters, we are able to bargain the most profitable deals for our clients.

In addition, we provide discounts on the predetermined premiums set by the underwriters, providing you with cheap general public liability insurance and still the highest quality contracts.

Best general public liability insurance in Cyprus

There is not one insurance contract best suited to everyone, but there’s one best suited to you.

Our experienced insurance consultants can find your business the best general public liability insurance according to your particular needs and budget constraints.

General Public Liability Insurance Cyprus

Firstly, we aim to understand the minimum number of terms to include in your contract. Then we carefully analyse the requirements your clients, suppliers, partners and regulators set.

We then look for the most affordable contract for your business, after which time we suggest optional terms that will increase your protection.

We are confident that our contracts have fewer exceptions than similar contracts in Cyprus, and we can easily procure the best deal.

Pitsas Insurances cooperate with more international underwriters than any other insurance company in Cyprus, enabling us to find the best deals for you.

General public liability insurance quote in Cyprus

Pitsas Insurances is one of the oldest insurance companies in Cyprus, operating since 1985, with over 35 years of experience.

We cooperate with all underwriters to bargain the most profitable deals for you and provide you with discounts on predetermined premiums.

To view and compare our commercial general public liability insurance products, please see here.

General Public Liability Insurance Cyprus

Speak with one of our insurance experts today for a hassle-free quote.

Pitsas Insurances Team