A look at Public Liability Insurance

If you own a business that deals with the public then one thing you may want to research is public liability insurance.  This is due to the fact that this type of policy is not part of every indemnity policy, and if something occurs and your business is not covered it could mean the difference between bankruptcy and continuing on.  While you can repair a broken reputation with years of work, there is not much you can do to repair a catastrophic financial situation once it occurs.  Therefore, you need to take preventative action to avoid a lawsuit payout from ever affecting your company.

It is important to understand what exactly public liability insurance is to understand the need for it.  In minimal terms, this type of insurance covers your business if any customer suffers an injury while on the premises of your business.  In addition, it extends cover if their property is damaged while either on your business property.  For example, if a car was on the property of a mechanic and it was damaged by fire or accident then you could be sued even if you were not involved in the accident.  In addition, all legal charges are covered in the case that a claim is filed.

One thing that it is important to understand is that all businesses have risks associated with them whether they are evident or not.  Some business owners make the mistake of believing that since they run a simple small shop or boutique they are not at risk and do not need public liability insurance.  However, accidents can occur and something as simple as a slip in your shop due to a rain puddle can lead to a very high legal bill if the customer sues.

Finally, it is vital to understand that you need coverage while working on the property of a client, and not on your own business property.  For example, if you are a locksmith and you damage property inside of the home while attempting to open the door you will be liable for damages.  Although you are not on your property, when you enter the another’s home or business for business purposes you become liable for any damage you may cause whether intentional or not.  Therefore, it is important for all business owners to carry some type of personal liability insurance.

Article for Directlineforbusiness.co.uk