Home Features The rise in necessity of public liability insurance for businesses
There’s always an element of risk when you run your own business, but there are also ways to protect yourself, such as insurance
Is your business protected by public liability insurance? If not, you could be putting your livelihood at risk.
There’s always an element of risk when you run your own business, but there are also ways to protect yourself. Public liability insurance isn’t compulsory for most businesses, but it can prove essential if you work with the public. Here, you’ll discover why there’s an increased need for companies to protect themselves with public liability insurance and how it can help.
Why public liability insurance is essential
When you work with members of the public, there’s always a chance something could go wrong. Whether they have an accident in your store, or something goes wrong when you’re carrying out work at a client’s home – they could end up making a claim against you for injury or damages.
If you are expected to pay compensation, it’s likely to cost thousands. If you don’t have a lot of extra cash lying around, public liability insurance can help. It can cover any compensation payments, as well as legal costs if the case gets taken to court. The insurance can also cover any medical costs, as well as the cost of replacement or repair work which may need to be done.
So, public liability insurance can literally save your business from shutting down if the worst does happen.
What other benefits does public liability insurance provide?
As well as ensuring your business survives if something goes wrong, public liability insurance has numerous other benefits too.
If you take out public liability insurance, it shows your clients and customers you actually care about their safety. It really sets you apart as a reliable business. These days, competition in business is high and it takes a lot to stand out from your competitors. As public liability insurance isn’t compulsory, many of your competitors are unlikely to have cover. So, taking it out would give your brand an edge, making potential customers more likely to choose you.
That leads us to the next benefit – you could use it to gain new business. It’s actually specified in many client contracts, that the business needs to have public liability insurance. If you don’t, many clients may flat-out refuse to hire you. Therefore, having this type of insurance can help you to gain more work and in turn, earn a lot more profits.
Finally, public liability insurance can also protect your company if the business needs to close for a while due to a claim made against you, or if repairs need to be carried out after an accident. This means, you won’t need to worry about the costs of any downtime the business may suffer.
All in all, public liability insurance should be considered a vital piece of cover for all businesses involved with the public. Accidents can happen and if you aren’t financially prepared, you could end up losing not just your reputation, but your actual business too.