Can You Afford to do Without Public Liability Insurance?

For some businesses this question may not have any relevance, as there may be a legal requirement to have this sort of cover. This might be the case in situations where your business is supplying goods and services to your customers.

If you do no operate in these particular business segments though, you may be asking yourself whether or not you actually need this type of protection. The simple answer is that it is certainly worth thinking about seriously:

  • Public liability insurance may provide you with financial protection should you be successfully sued by a member of the public for loss or injury they have suffered and which they believe is the direct result of your negligence in some aspect of your business;
  • That might be due to some defect in your product or service that you provide or could simply be attributable to a member of the public suffering some form of accident whilst on your premises due to circumstances held to be your responsibility;
  • Court awards for damages can be substantial and without this type of cover providing financial support, you may find yourself in the position of having to close down your business or being forced into bankruptcy;
  • Bear in mind too that even if the court case against you is unsuccessful, you may still end up facing legal costs which again could amount to a significant sum;
  • You may come to the conclusion that these types of risks are substantial and that the costs of public liability cover may be something that you should factor into your business plans as a way of managing the exposures concerned;
  • Areas of potential liability arising from running your own business do not stop there though;
  • As noted above, the type of business you have is an important factor in determining whether or not this type of cover is mandatory but with employers’ liability there is no such distinction;
  • If you have employees then with only some relatively minor exceptions, you are legally obliged to insure yourself to provide the financial provision to cover situations where your employees sue you because of some loss or injury that they have suffered in the workplace;
  • You may wish to note that you might be required to provide this type of cover even if you have friends or family helping your out on an informal basis.

You may face more than enough stresses in the day-to-day running of your business without having the worry of being sued for and needing to pay, damages. Even if there is no mandatory requirement in your case, in our increasingly litigious society, it may just make sense to get yourself the protection of public liability cover.