The Importance of Public Liability Insurance For Small Businesses

When the time comes to think about what insurance your business needs, it is highly advised to think about the type of work that you will be doing and the risks your business might have. Technically there is no law that says you need public liability insurance, but have you ever met someone that was not glad they had insurance once they needed it? Surprisingly, whether or not you have public liability insurance is something that serious customers will consider before doing business with you.

It would be very wise to think about having a public liability policy you can check providers such as One Sure Insurance. Public liability is an insurance that’s particularly in demand by stores, merchants and salons, because it can provide compensation claims made against your business in case one of the customers is injured, or if their property gets damaged.

‘Third party’ means anyone that can have contact with your business. As in, your consumers, your applicants/employers, your vendors, or any other member of the public who has the opportunity to be a part of your business. For example if you own a beauty salon and a customer trips over a wire that’s accidentally left on the floor of a common walking area, they can sue you for the injuries they might get from falling. The compensation amount would have to be enough to pay for medical bills and lost income. Another scenario, consider yourself labouring at a construction site and a parked car is gets hit by your equipment as you are working. The compensation amount that this policy can provide will be calculated for the repair or replacement price of the vehicle. Compensation payments can add up and could possibly cost you your profits, and remember that you would also be responsible for paying legal fees.

It is very assuring to know that your public liability insurance would pay these costs, depending the amount that your individualized policy can pay.

In general, these are some of the factors to acknowledge when contemplating whether your business requires public liability insurance:

• Does your business come into contact with consumers or other members of society?
• What are the chances of your business could causing injury to someone or property damages?
• Do your client agreements require for you to have public liability cover?
• Are you a part of any professional organizations that require public liability insurance?
• Could a public liability policy help the minds of your customers feel safer knowing you have a policy in the event of something going wrong?

When you finally decide that you should purchase a public liability insurance policy, you need to set a coverage limit, which is the highest amount your policy provider will provide for a claim. The limit you choose should be determined by the potential hazards that your business faces, so it is crucial to think about the volume of your projects and the degree of your involvement with the public.

You should also check agreements signed with clients, since some might specify a certain level of coverage. For example, government contracts usually require at least £5 million in public liability coverage.