Public Liability Insurance
Public Liability Insurance Keeps Your Business Safe
If you are running a business, you are accountable for your business activities and any mishap occurring from it. Public liability insurance cover creates the much desired relief for you here.
What is public liability insurance?
In simple words, public liability insurance covers the compensation cost for a company in case anybody suffers an injury or loss given the business activities of the firm. Along with the compensation payment, the insurance would also cover the legal fees needed to settle the claim made by the injured party. Such an insurance is thought by many businesses to be essential.
Why do you need public liability insurance?
Accidents are not uncommon in business, no matter how many precautions you have taken and the worst part is that you never know when a mishap would strike. It just takes a minor thing such as a slippery floor to injure your customers and if such an unfortunate incident happens, the injured customer can always sue you asking for compensation- which would mean a hefty monetary fine on your part. You would have to hire a lawyer here and legal proceedings are time-consuming affairs, continuing for months. It will only add up to your monetary compensation resulting in potential damage for the business finances.
In fact, in some situations, the liability compensation sum can reach up to thousands or more, which is really nasty prospect, especially for SMEs. This is why you would need a public liability insurance policy. When you are guarded by the liability insurance policy, the compensation fine would be settled by your insurance provider in case anybody sufferas on account of your business activities. The policy would look after the damage claims, the legal fees & other relevant expenses so that you can have your peace of mind even if an accident occurs in your offices or premises.
It should be mentioned here that public liability insurance does not just cover accidents in your offices or premises. In fact, it would also cover the mishaps that happen in others’ property given your business activities. For example, if your workers break something or injures someone while working on a client’s property, your public liability insurance would take care of that.
Besides this, public liability insurance goes a long way to gain your customers’ trust and uphold yourself as a credible name in the market. Customers are very savvy today and they often look for the liability insurance part in their chosen company before hiring. Your liability insurance cover assures them that if anything happens to them or their property in your business premise or because of your business activities- they would receive their adequate compensation. Thus, your public liability insurance cover plays a strong role in refining your image towards your audience.
Is it legally compulsory?
Now, you must be looking to know whether public liability insurance is legally compulsory. Whilst, it’s not legally mandatory and you won’t be fined for not having it, it is something essential for the protection of your business finances and the reputation of your brand. If you have your clients visiting your office (even it’s a home office) or your staff visiting your clients’ premises, you must be serious about liability insurance cover.
Moreover, the insurance backup would mean that the insurer would handle all the consequences arising from the customer’s injury claim -so that you can go on with your business activities peacefully.
What would it cover?
The public liability insurance cover encompasses a wide array of situations. However, in simple words, the insurance policy may cover your company in case somebody gets injured somehow due to your business activities. Moreover, it could also provide cover for damages caused by your employees on a 3rd party property while working for you. It’s to stress here that even a little scratch on a 3rd party property might cause hefty fines for you. If the injured party drags the case to court, the insurance policy could attend the legal expenses on your part as well.
How much would it cost?
The cost of your public liability insurance policy would depend on the type and size of your business- as well as the risk factors involved in your operations. You should also study the market to find out the minimum level of coverage expected by your target niche from your type of business.
Small business owners usually have the incorrect notion that the liability insurance policy is something for the bigger companies. You must understand that you should get liability insurance, regardless of the size of your business. Yes, the cover amount might be less in your case compared to that of the bigger companies which receive greater traffic than your office premise. Once again, something as minor as a loose carpet causing a visitor to trip in your office might lead to thousands of pounds when you are uninsured.
While taking out the insurance, you should inform your insurer about your type of business. The liability insurance policies are extended to a wide variety of professions, starting from tradesmen through to dog walkers. A policy of 1 million pound would be sufficient for a small business while some companies would need to go for at least 5 million pounds of insurance cover, especially if you are in public sector.