One of the most essential types of cover your small business needs to consider is Public Liability insurance. Designed to protect you and your business against the risk of being held liable for causing death or injury to a third party or loss or damage to their property.
As a small business owner, you have a responsibility to provide a safe environment for your customers, employees, the greater community and third–party property. The financial consequences of being found negligent could be enough to end your small business dream. Fortunately, with the right Public Liability cover, you have protection in place to provide the funds to cover your legal costs and any compensation costs, giving you peace of mind.
Typically a Public Liability policy will extend to include cover for Product Liability. This is a vital type of cover if you or your business sells, supplies or delivers goods, even in the form of repair or service. It provides cover for claims against you where your goods have caused injury, death or damage to another business or person from the failure of your product or a product you are selling.
Unfortunately, even the most careful of businesses are exposed to the risk of causing injury to someone or damaging something during everyday business operations. Investing in the future of your business is a smart plan, and by having the right Public Liability insurance you’re taking a step in the right direction.
You’ve worked hard to build your small business, so why would you risk going out of business if you were to experience a public liability claim? Even when you’re doing business with other businesses, you need to make sure they have Public Liability insurance too, should an accident or injury occur from their negligence.
A Public Liability claim could result from:
- A hazardous environment where a third party was injured
- Damage to a third party’s personal property
- A faulty or defective product
Do I really need Public Liability Insurance?
Unless you have a crystal ball to predict all the unexpected challenges life throws at you then the answer is yes. If you or your employees interact and do business with other people at anytime, then Public Liability insurance is vital. Here are some examples:
- Consultants/Contractors/ Tradespeople who have a home office or visit their clients’ premises
- Businesses that have an office, showroom, shop or any premises
- ALL businesses that have interaction with customers or the public should have Public Liability insurance
^Examples of business source from Know Risk article Public liability insurance for small business