Is Public Liability Insurance Worth The Money?
If you own a business, you may be asking if public liability insurance is a necessity or if it can be avoided. In some cases public liability insurance is a legal requirement – it may be stipulated in government or local authority contracts that you need some form of cover. In most cases it is certainly advisable.
Employers liability insurance is a legal necessity if you employ one person or more. The section of the public that you are most immediately responsible for are your own employees. Public liability is almost like an extension of the concept of employers liability in the fact that your business becomes a public arena. The more successful your business, the more clients you will interact with and the more exposed you might be to potential claims.
We are constantly exposed to television advertisement campaigns from legal claims firms, encouraging the public to make compensation claims. Compensation culture is often justified albeit highly dubious, but the fact it exists in such force is a strong argument for businesses to take on public liability insurance.
Business Insurance can be a maze of terms and unusual policies, but they often boil down to four or five main areas: employers liability, professional indemnity, public liability, property insurance and other related schemes. The main difference between business insurance and home insurance is the fact that when you own a business you owe a duty of care to more than just your immediate dependents. You are responsible for a diversity of employees, clients, customers and passers-by. This naturally demands a more comprehensive range of insurance coverage, which can cover things like legal fees and compensation pay outs.
Many legal firms now market their services in a way that makes the plaintiff feel like they are suing the insurance company and not the business owners personally, with the presumption that the business will be covered in the first place; this emphasizes the fact that good public liability insurance is vital to your business.