When business owners contemplate the most important insurance cover for their business, most think of insurance covers against fire, theft, or health. While all these covers are vital and necessary for a business, one other insurance cover eclipses all these risk products – public liability insurance.
Public liability insurance protects your business from damage or injury that may afflict other people (workers, customers or members of the public) as a result of your actions, your employee's actions, your products and services. Read on to see why this cover is so important:
Liability can be very expensive
Liability is critical is because it can be extremely expensive for you. If a customer gets injured while using your products or using your premises, you may be liable to paying for their treatment, rehabilitation, missed income, plus compensation for their pain and misery.
On top of that, you may get slapped with punitive fines as a deterrent. If you provide a product or service that affects the mass market, the financial repercussion could runs into millions. Liability can therefore be very costly, so costly that it drowns your business.
Liability has the highest frequency probability
You should also recognize that unlike other risks, liability is an everyday probability. Even worse, you can accrue liability numerous times in one day. For example, if you are selling a faulty product, you may end up facing liability charges from tens of people – all in the same day. This means that unlike fire, theft or vandalism that may happen once in a while, liability has the highest frequency possibility of all.
Because mistakes will happen
The whole purpose of taking on an insurance cover is to mitigate risks. Liability is a risk too, and just like other risks facing your business, it can be grave. In fact, you cannot predict or completely safeguard your business against liability. You cannot fully expect what negative consequences may come from your products, services, statements, employee actions and even your property. Liability is therefore broad and far-reaching. No business is absolutely safe.
A public liability cover is great for business
While lack of a public liability cover can break your business, having it will actually improve your business. When clients learn that your business has a public liability cover, they know that should anything happen to them as a result of your actions, products or services, they will get fair compensation. Indirectly, they understand that your business will do whatever is possible to avoid the said liability, just as you have gone out of your way to get a liability cover in the first place.
Therefore, if your business doesn't have a public liability insurance cover, you should apply for one immediately. Similarly, if you're planning to start a business, the first cover you should ask for is public liability. Contact a company such as Elders Insurance to learn more.
Hi, my name is Molly. Welcome to my blog. Through the years, I have bought almost every type of insurance imaginable, including travel insurance, business insurance, health insurance and almost every other type of policy. If you are looking for an insurance policy, you need to check out what I have learned over the years. In this blog, I am including tips on getting low premiums, choosing the right excess, selecting the best policies and more. Living with insurance provides me with peace of mind, and I hope it provides you with the same. Please, explore and use these tips to improve your life.