An Introduction To Public Liability
If you’re self-employed running your own business you’re regularly facing risks that are not typically encountered by those employed by an employer. Whether you’re a Sole Trader or employed by your own company you’re constantly exposed to legal liabilities within your workplace or environment.
If your new to business and fall into the thought process that there is not real risk to yourself or your business from legal action think again, today’s society is always seeking someone to blame, and accidents do happen more often than we think. When they do happen they are typically pursued aggressively and can be extremely expensive to resolve, not to mention a lengthy process and at this stage the initial public liability insurance cost will be the last of your concerns.
In business you are responsible for the actions of yourself and company, if you damage property or cause personal injury to third parties you most likely will be sued in respect to the legal liability to the damage or injuries. Public liability insurance is a class of insurance that indemnifies you or your business against claims in respect of the legal liability to third parties in respect of injury and damage.
Even tho public liability insurance policy isn’t a legal requirement for most business owners there are a few trades and services that are the exception. Never the less having insurance protection can save your business from financial ruin, particularly in legal defence costs which can be extremely expensive. Its possibly the most important aspect in insurance, if a party makes an allegation against yourself or business regarding possible liability for potential loss your insurance company will act in response whether your responsible or not.
Another important factor in deciding your public liability policy is deciding your limit of indemnity, this amount is the insurance company’s maximum liability under the policy. Limits are typically trade related or a contractual agreement. 2 Million, 5 Million or 10 Million are common and naturally the higher the policy cover the more costly it becomes.
Lastly its essential to make sure your business description is accurate in the policy as any work outside these parameters will not be covered. Having adequate public liability insurance cover is a relatively small cost and effective way to manage the risks to yourself or business.