Understanding public and employers’ liability insurance for optometry practices

The scenario

“I’m opening my own optometry practice later this year, and trying to get organised in terms of paperwork. I've heard that I need both public liability and employers’ liability insurance – could you please explain to me what these things are, what scenarios might cause me to make a claim, and what kind of insurance would cover this?”

Jim, AOP member

The advice

Emily Tyler, commercial development manager at AOP insurance affinity partner, Lloyd & Whyte

Opening your own optometry practice is an exciting milestone, but it also brings legal and commercial responsibilities. One of the most important is ensuring the right insurance is in place to protect your business, patients, and staff. Two key policies every practice owner should understand are public liability insurance (PLI) and employers’ liability (EL) insurance. While they’re often discussed together, they protect against very different risks.

1 Public Liability Insurance protects you from claims made by patients and the public

PLI covers your practice if a third party, typically a patient or a visitor, is injured or has their property damaged as a result of your business activities.

PLI covers:

• Injury to a member of the public
• Damage to third-party property
• Legal defence costs and compensation.

Even in a relatively low-risk clinical environment, accidents can happen. Without PLI, your practice could be liable for significant legal costs and compensation, which can be financially significant.

2 Slips, trips and property damage are among the most common public liability claims

Public liability claims often arise from everyday, unexpected incidents, rather than clinical activity.

Typical scenarios include:

• Slip and trip incident: a patient slips on a wet reception floor and sustains an injury, leading to a compensation claim
• Damage to third-party property or personal belongings: a member of staff accidentally spills cleaning fluid on a patient’s coat in the waiting area, resulting in a claim for replacement.

These incidents can happen in any practice, regardless of size or patient volume.

3 Employers’ liability insurance is a legal requirement for most practices

EL covers your legal liability if an employee becomes injured or ill as a result of their work.

In the UK, this insurance is a legal requirement for most employers, including optometry practices. It protects both employees and employers by covering:

• Legal defence costs
• Compensation awards following successful claims.

4 Employers’ liability claims aren’t limited to accidents

Employers’ liability claims can arise from both physical and non-physical health issues linked to the workplace.

Common examples include:

• Workplace injuries: a receptionist trips on uneven flooring and injures their wrist
• Occupational health issues: an optical assistant develops a repetitive strain injury related to workstation setup or repetitive tasks
• Stress-related claims: allegations of stress or mental health issues caused by workload, staffing levels, or insufficient workplace support.

These claims highlight the importance of both adequate insurance and proactive risk management.

Most employers are required to hold a minimum of £5 million cover, although higher limits are common.

5 The right level of cover depends on your practice profile

When arranging public and employers’ liability cover, insurers will assess a range of factors, including:

• Number of staff employed
• Practice layout and accessibility
• Patient footfall
• Scope of clinical and retail services
• Equipment, flooring, and workplace risks.

Ensuring your cover accurately reflects your practice’s risk profile helps avoid underinsurance and ensures appropriate protection if a claim arises.

To conclude...

Insurance is not simply a compliance exercise – it is a critical component of responsible practice management. PLI protects you from the financial impact of claims by patients and visitors, while EL safeguards both your employees and your organisation from workplace-related legal actions.

Lloyd & Whyte offers optical practice insurance that is tuned to the needs of your profession and includes both types of cover. Taking the time to secure the right level of cover, with the support of experienced brokers like Lloyd & Whyte, provides peace of mind and allows you to focus on delivering excellent patient care.

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