Are You Liable? The Lowdown on Public Liability Insurance

Running a small business in this economic climate isn’t easy and it’s important to save cash anywhere you can. But choosing public liability insurance is one of those essential jobs you don’t want to be rushing or scrimping on, as just one claim could end up putting your entire business in jeopardy.

Below we weigh up the risks of litigation to a small business, to see whether it is better to be safe than sorry by insuring against this risk.

Public Liability vs. Professional Indemnity

Firstly, one of the main things to point out is that public liability insurance is not the same as professional indemnity, and does not cover claims relating to the professional services a business provides.

Public liability insurance covers events where a customer or other member of the public suffers any kind of loss or injury resulting from your business activities. For example, if someone should get injured on your premises, or because of something you or one of your employees has done.

Is it necessary?

Even if you do everything by the book and think you have got all of your bases covered, the reality is that accidents do still happen. Public liability insurance ensures you have the peace of mind that should the unexpected occur, such as a customer suing after becoming injured on your premises, you and your business will be protected.

What else can public liability insurance cover?

Most insurance companies will tailor the policy to the individual needs of your business, but some optional extras will include employers’ liability insurance, which will give you protection in the event one of your employees is injured or becomes ill as a result of their work. Depending on the type of business you run, you might also want to cover the expense of damage to or loss of tools and equipment, which can be very expensive to replace.

All in all, with the potential for just one claim arising to signal the end for your business, public liability insurance is crucial to buy you the assurance that you can continue to operate, even if the worst should happen.

Are You Liable? The Lowdown on Public Liability Insurance

Sweating the Big Stuff

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