If you run your own small business, either as a sole contractor or as the employer of a few staff, then you probably already know that managing money is vital to the success of your business. The insurance you buy can play a major part in protecting your livelihood and you may well have had certain policies, such as public liability cover, recommended to you. So, why might it be useful to you to buy public liability insurance?
Cash flow may well be one of the biggest concerns for you and you probably already take measures to keep your business on an even keel as much as you can. You may well see the benefits of making sure that you have basic business insurance cover in place to protect various aspects of your company. But, have you factored in the financial problems that your business may have if something happens to someone as a result of something you do?
One of the main reasons why people who run businesses just like yours choose to take out public liability insurance is simply to get extra protection. If something you do leads to a third party (whether they are a customer, a supplier or a visitor to your premises) having an accident or getting injured then you may have to pay out significant sums of money as compensation. With public liability cover in place this may not mean that you have to find the money out of your own pocket or out of your business profits.
The easiest way to work out whether you need to buy insurance for public liability is to think about the worst that might happen. What would you do, for example, if you were working on someone’s electrics and the person you were working for tripped over one of your cables and broke their leg? Could you manage to pay legal costs and compensation if they took your business to court and sued you?
The fact is that this can happen. People are more ready to sue over this kind of thing nowadays than ever before. So, taking some time to choose and buy public liability insurance might simply give you the financial protection you need for you and your business if this kind of thing does happen. Some business insurance policies offer this as a part of a standard commercial insurance package, so shop around to see who is offering what.
By James Clapton