Why your business needs Public Liability Insurance

It’s a good idea to get a Public Liability Insurance quote for your business and then buy the cover that suits you, even if you’re just starting out, but do you know why you really need it ?

Your business affects others

When you run a business you will usually have some kind of interaction with people.  They could be your customers, potential customers or just other members of the public.??If one of those people suffers an injury or their property is damaged by you and your business in the course of undertaking your business activities, Public Liability Insurance is there to cover compensation claims against your business.??Depending on the situation sometimes these compensation claims can be expensive.  Without Public Liability Insurance in place to cover the cost of the claim many small businesses would be crippled by the compensation payment they would have to make.

You might need to prove that you are covered

Sometimes you might take on a contract and your employer will insist that you have Public Liability Insurance cover before you work on their site.  You would often then need to provide a certificate of your cover so you could start work.??This type of scenario doesn’t just apply to larger businesses working on big contracts it also applies to smaller companies and Tradesmen.  It’s very often required if you are working on a local authority contract.

Cover loss of earnings

Depending on the type of business you run, unexpected events might cause you to suffer a loss of earnings quite quickly.  By having Public Liability Insurance cover in place you are often able to cover your business for potential losses.  This will of course give you peace of mind that an event out of your control doesn’t have a substantial impact on your livelihood.

Legal Costs

When compensation claims are made they often incur legal costs.  In some cases, depending on the outcome, you will have your own legal costs to pay as well as the costs of the person who made the claim against you. Public Liability Insurance is there to provide protection for you if you have to pay these legal costs. A lot of companies take out Public Liability Insurance because they know they have to have it but don’t really understand why.  It’s often quite important to understand what you’re covered for because if an unexpected event should arise you will quickly understand what you can claim for and what you can’t.