As a business owner or sole-trader, you will be aware of public liability insurance and the importance of having it to protect your company and customers.
Unfortunately, as the cliché goes - 'accidents happen', but if you have appropriate public liability insurance, you are protected should anyone make claims against your business for damage to property, personal injury or death. There is no guarantee that you will not be found negligent, but public liability insurance will ensure that you are protected against the risk of having to pay massive legal costs and compensation fees.
There are some fundamental elements to be considered before choosing a public liability insurance policy or product:
Does the liability insurance policy cover all business activities?
Liability insurance policies are mostly designed to accommodate different business types, but it is critical to ensure that the policy you chose sufficiently covers your specific company activities.
Consider these questions:
- Who will be covered by the liability insurance policy?
- What exclusions and inclusions are there in the liability insurance policy?
- Does the liability insurance policy cover all business-related activity?
Is the cover level of the liability insurance product adequate?
The level of cover really depends on the type of business that you operate; some industries carry a higher risk factor than others.
It's essential to think carefully about the particular risks that your business could present. It might be very tempting to opt for a lower cover level to save money, but inadequate liability insurance cover could cost you a fortune in the long run if someone makes a claim against your business.
Are all relevant requirements met by the insurance policy?
It is important to know that states and territories have their own licensing regulations for certain businesses which include public liability specifications. There are also several professional industries and industry associations that stipulate a minimum level of liability insurance cover.
Contracts from all across the business spectrum require workers to have public liability insurance. This could be tradespeople working on a building site to fitness instructors taking classes in a gym. If you are renting premises for your business, the landlord will most probably request that you have a public liability insurance policy in place to protect against personal injury and other claims.
Is the business risk reduced?
Even the most vigilant organisations can still potentially suffer losses and be exposed to claims. But by adhering to sound business practices, you could lessen your premiums over some time and reduce the risk of personal injury and other claims.
You can make improvements to your business where possible to ensure best safety and security. Examples of this are:
- Installing measures such as alarm systems in your premises
- Making sure staff training is up to standard and up to date
- Learning more about relevant industry fixes to avoid common mistakes and accidents.
Choosing a public liability insurance policy can be overwhelming as there is a lot to consider. Let Preston Finance & Insurance help you find the right product for your business insurance. Contact the Preston Finance & Insurance team to arrange a no-obligation consultation to talk about available policies and suitable products that work for you.
Disclosure: This above information is not comprehensive. It provides only a summary of the subject matter covered and is not tailored specifically to your business or private situation. You should make your own assessment of this information and rely on it wholly at your own risk.