Although public liability insurance is not required by law, every small and medium-sized business owner should take advantage of such insurance to maximise security and protect their business.
Regardless of the industry a business operates within, public liability can be used to protect against unwanted personal injury claims. Although it may take every precaution to prevent accidents, sometimes they’re inevitable.
In retail environments, for example, wet floors to lead to an accident, while contractors could suffer a lawsuit if a ladder smashes into a car window.
Businesses within the United Kingdom have long been sued for breach of duty or negligence, and public liability insurance is offered to protect businesses from the penalties or court cases that could otherwise cause significant financial difficulty for small and medium-sized businesses.
>See also: Why innovation is at the heart of the insurance industry’s evolution
Financial blanket
Public liability insurance gives business owners added peace of mind. If there is an accident and a member of the public is injury, public liability insurance can be relied upon to cover the cost of legal fees, expenses and medical treatment for the concerned parties.
Most businesses take out policies that offer protection for compensation claims of between £1 million and £5 million, offering significant cover that can protect against high profile cases.
Recent changes to government legislation mean that the new limit for small personal injury claims is £5,000, up from the limit of £1,000 which has remained in place for almost 25 years.
It’s, therefore, imperative that you take out public liability cover to protect against the increased settlement claims that are likely to follow from personal injury accidents that could be caused by your business.
>See also: Back to the future: What will the next 10 years hold for the insurance industry?
If a company does not invest in a public liability insurance policy, it will be solely responsible for the total amount of any accident claim. Without the funds to pay the claim, then the company’s assets will be used, or it may be subject to personal financial responsibility if it is a sole trader.
Although it’s essential that businesses make all the necessary cut backs to keep in profit, keeping on top of public liability insurance is highly recommended. Without such insurance, a business is not covered, which could result in serious legal and financial difficulty.
While there are no UK laws that require businesses to purchase public liability insurance, business insurance firms like Be Wiser give organisations the peace of mind that they can stay in operation even if the worst was to happen.
