In order to understand just why it is your company needs to invest in public liability insurance, it is essential to obtain a good understanding of what public liability insurance happens to be.
It also provides cover for any third-party property damage that might happen as a consequence of the job that a business carries out. This sounds a little complicated, but all it essentially means is that if the property of then associate of the client gets ruined, for instance the car of a neighbor during house repairs, then this is covered by public liability insurance.
As a business proprietor, you're legally liable for any claim which is made against your company for injuring someone or for causing harm to somebody's property, as well for bringing about the loss/theft of someone's property. This legal obligation ensures it is down to your organization to subsidise the price of any legal action, along with any compensation monies which are awarded to a claimant who has successfully submitted a case against your company. Historically, many companies are made insolvent due to legal fees and compensation payouts.
It's vital to realise the magnitude of your company, along with the character of its business, will affect the amount that an appropriate public liability insurance coverage costs. The coverage limits of your public liability insurance will be set by the supplier, and although a coverage limit of GBP1 million might suffice for a soul trader using a carpentry business, it's probable that such a plan would prove insufficient for a big development company that builds skyscrapers. Naturally, an insurance carrier will charge the larger business issue, with larger coverage limits, a great deal more for insurance than it could the individual together with the carpentry business.
Where people are all too frequently prepared to gain from an injury, we live in a skeptical old world these days. You need only take a look at how companies motivate people to make injury claims for almost anything, to realise the single biggest risk a company can take would not be covered with an appropriate public liability insurance policy. If your business doesn't inadvertently bring about a trip/slip/fall injury, then there are tons of people out there who are more than capable of making certain that it does. Bearing this in your mind, it is significant that the firm gets it right with public liability insurance.
As well as protecting yourself and your firm against any injury that may occur as a result of your own company activities, additionally it is essential that a public liability insurance coverage gives you cover against any accidental damage that could be caused by your business. Again, and unfortunately, it pays to be cynical in regards to ensuring that you're adequately covered.
Everyone has heard about the tradesman that gets blamed for a spillage on a carpet that has been there since well before that tradesman even entered the client's house, let alone laid down several sheets to make sure that nothing got spilled on said carpet. Cover should be provided by a single public liability insurance policy against both accidental damage and accidental injury.
As well as protecting you and your organization against false claims, it's also necessary to protect your organization from the harm and harm that, regrettably, is at times the fault of your own organization. It is not very realistic to run a company on expectation, and to think that 20 years or more will pass without one single casual damage event, or without one man unexpectedly being injured, will be to confuse optimism with stupidity.
In a few places, it's illegal to run a business without public liability insurance, and you also need to consider why public liability insurance is really not a worldwide legal requirement. Ensure you are not one of the companies out there, putting the public at risk by neglecting your duty to acquire appropriate cover.
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