When to get public liability insurance
If your business interacts with the public, it's likely that you need Public Liability Insurance. This policy covers your company from third party claims of injury or damage to property, as a result of an incident caused by your company's business activities. Whilst for the majority of SMEs it's not compulsory or a legal requirement, in some instances a business can't operate legally without this type of insurance cover.
When is the best time to take out Public Liability Insurance?
The best time to take out Public Liability Insurance is before you even start trading. That's because you have no idea when a problem might occur that can result in allegations of injury or third party property damage. Ensuring you are adequately covered as soon as you begin trading is a wise move. If you don't understand the potential risks or believe that no-one could sue your company for injuries or property damage, the results to your business could be devastating. The bottom line is that if you have been trading for years without being sued and you don't have Public Liability Insurance, this situation might not continue. It's vital that you investigate your options, before it becomes too late.
When can you be sued for injury or third party damage?
There are an endless number of examples where the public sue SMEs for injury or property damage. Some of these instances may be cases that you believe could never happen, resulting in devastating consequences. A few examples of these are noted below; Essentially if customers or suppliers, any third party visits your store, restaurant, workshop, factory or other place of business (including your home for a home based business) you can be sued if they are injured on-site or their property is damaged. The same applies if any of your employees visit a customer's site and cause damage to the customer's property or the customer themselves. If a customer is injured by one of your products that they purchased your company can also be sued. You can even be sued if you host an event off-site that is attended by the public!
How do you know if you need Public Liability Insurance?
If you don't have Public Liability Insurance, use your risk management planning to think of all the instances that could happen with your business and when you could be sued for third party injury or third party property damage. To assist you with this, talk to one of our insurance specialists who will help you decide whether your business can benefit from this type of insurance and provide guidance on the cover required. The take home message is that it's more than likely that you do need Public Liability Insurance and the sooner the better. Otherwise you stand to literally lose your business if you have a claim and the case is awarded against your company, and no Insurance coverage to help you with the cost.