When you are running a business, you will do whatever it takes to protect your company from any type of damage. Entrepreneurs that try to save money on these costs often regret it in the end. The damage that can potentially occur will bring extremely higher costs than the ones you would usually have.
We are not talking here about investing in good equipment for your business. You should also pay attention to public liability insurance and protect yourself from unexpected accidents.
You are probably wondering now whether this type of insurance is necessary for you or not. Well, no one says that you HAVE to get it because there is no such thing as a law that makes this type of insurance mandatory. However, it is a smart investment, especially for specific industries.
If you are an owner of a restaurant, salon, shop, or simply a tradesman, then this type of insurance is going to be a good choice. However, when you look closer, there is no such thing as a business that is not interacting with the general public in some specific way. Because of that, as we already said, this can only be a good opportunity.
Of course, no one says that you need to listen to us. It is much better to check out websites such as quoteradar.co.uk and see how exactly this public insurance look, how much it would potentially cost, and other details. But, before you do that, we recommend you continue reading this article because we will answer some of the common questions about public liability insurance. Let’s go!
Which Costs Does Public Liability Insurance Cover?
Here comes the moment that will probably convince you even more that investing in public liability insurance would be a smart choice. Costs that you can cover this way are associated with compensation payments and other legal costs. A supplier, customer, or simply a person that passes near your store, restaurant, or anything else may get injured. Despite that, you can cover all the costs if there is some sort of property damage to a contractor or any other client.
Let’s use an example that may seem silly at first, but it definitely happens all the time. You work as a consultant and you have to go to the client’s office from time to time. During the meeting, you accidentally spill a glass of water on the equipment your client is using. Can you even imagine how much money you will have to spend to cover those costs? However, if you pay for the public liability insurance, then the insurance company will cover the costs.
On the other hand, let’s imagine that you are a restaurant owner. Your employees need to clean the floor of the premises and make the guests feel comfortable. Unfortunately, the floor remains wet a bit longer than you expected and one of the guests simply falls and breaks a leg, arm, or anything else. This is another moment when you will have to spend a decent amount of money to cover the medical costs of that person. However, if you are paying for the insurance, this type of problem is not going to be as big as it seems.
To make some sort of conclusion, public liability insurance can be good for different situations. It can cover some minor incidents that can happen at your workplace, but it can also cover the costs that appear when some more expensive accidents happen. Doesn’t this seem like something you should truly have?
What Public Liability Insurance Doesn’t Cover?
Well, we do not want to represent public liability insurance as a magical investment. Indeed, as we said, it can cover small or big damage, but that doesn’t mean you will have the right to use it in every single case. Whenever an accident happens at your workplace, you will need to go to the trial and represent your case to the judge. However, if there is enough evidence that you were too irresponsible, then the insurance may not cover the damage. Because of that, if you see that something is not right, you should try to fix the problem. There is no such thing as insurance that will cover EVERYTHING.
What about Employees?
As previously mentioned, this type of insurance protects you against any public claims. These claims can be made by clients, customers, or anyone else. However, as we said, this type of insurance is not mandatory and every business is free to make the decision independently.
Speaking of workers, if they get injured at the workplace, the worker’s compensation insurance will cover those costs. This type of insurance is mandatory, and you do not have the right not to pay it.
Still, there are some small exceptions that you may use. Let’s say that you hired a student that is trying to get some work experience for free. This person is not a regular employee, and that is the reason why public liability may cover the costs in case of injury.
What Determines the Price of Public Liability Insurance?
Well, here comes something you will have to know. The price you will need to pay depends on different factors. First of all, it depends on the business field where you are working. Despite that, it also matters how many workers you have. Finally, the last but not least thing is the insurance claims history. Every insurance company will check that out before selling you this type of protection.
Are the Insurers the Only Option I Have?
Without any intention to promote this type of buying insurance, buying it directly from the insurer is a more popular and easier way. This especially counts today when you can complete the procedure with a couple of clicks. However, it would be unfair not to mention there is also one other way how you can do that. You can buy it through the so-called BIBA. BIBA stands for British Insurance Brokers Association in case you didn’t know. Which option you will choose depends only on you, but we recommend you buy it directly from the insurer because it is a lot easier procedure.