While public liability insurance isn’t compulsory for every type of business, it’s certain an important consideration to make if your business involves interacting with the public on any level. Not having this valuable insurance could be the difference between your business continuing to run and going under if anything were to happen that required you to pay damages. From covering hospital fees to property damage, here’s why public liability insurance is worth thinking about.
What is public liability insurance?
Public liability insurance covers your business against the accidents that can happen in any industry, no matter how careful we are to avoid them. This type of insurance helps to protect your business from accidental injuries or claims for property damage from your customers or members of the public, either visiting you or who you may be visiting. The average settlement costs around £13,000, so public liability insurance is something that will offer a great return on investment.
It protects your customers and your staff
If you run a business, large or small, that deals with the general public then this insurance is fundamental for covering you against any unforeseen events or accidents. For example, a taxi driver is responsible for the safety of their passengers – if a passenger was somehow involved in an accident crossing, the driver would be held responsible and would therefore be liable for the accident in question. It gives your customers reassurance that they’re properly protected should anything go wrong.
Public liability insurance can also be used to protect your staff is any damage is caused to a customer’s property either on your premises or theirs. For example, companies like Butlers with Bums work with members of the public on a regular basis, with their models visiting the customer’s home for hen parties and events. Because they are on the customer’s premises, and working as a representative of the company, they’re liable for any incidents which occur during the time they are working. However, they are also then protected against anything done to them by way of rowdy party guests causing problems and the like. This type of insurance is used to protect their employees against any legal expenses that come from defending claims, should an accident occur, as well as medical fees and compensation payments from third party injuries. You can opt for a standalone policy or group it together with employers’ liability insurance for added protection and peace of mind.
Similarly, contractors like The Drain Guys, for example, who work in different locations may want to take out public liability insurance to cover them when the venue or setting they’re working at doesn’t have cover. Singers or musicians, for example, may play smaller venues which don’t provide the same level of cover as larger venues if anything goes wrong. Taking out insurance to add your own level of protection adds reassurance and responsibility and shows that you take your profession seriously.
It protects your business from going under
Accidents can occur from the smallest of details, from a piece of loose flooring, for example, that causes a customer or client to trip and injure themselves. But no matter how small the cause, the compensation claims can be enormous and could wind up being incredibly costly for your business. Whether you’re successful or not, the impact of this financially could result in your company failing, especially if you’re a small business. Having public liability insurance ensures your business is completely covered whatever happens, from the loss of earnings to the legal expenses and repairing any damages.
When determining your quote, insurers will consider different factors about your business, but the main one will be your level of business activity and turnover. If you’re a tradesman or your business involves you working on a property owned by someone else, then it’s important your policy includes third party cover. The overall benefit of using public liability insurance is reduced risk to your finances and could well be what secures your business’ longevity. And for staff and self-employed workers, it’s more than just protection from accidents. It’s also a sign of your professionalism and the legitimacy of your brand. It helps to prove to clients that you’re serious about your services and the safety of your customers, which can go a long way in helping to secure new clients in the future.