Assuming you do have public liability insurance, do you know what it covers? Some small businesses are aware they should have it, but they are not really sure why so here is a quick guide to what is covered and why it is so important.
Claims from the Public
Whatever your business offers, it must offer it to other people, either in other businesses or end user consumers. That is your obvious connection to other members of the public. But in the course of this, there may well be other occasional interactions with people, and risks of them making a claim against you. We never know what is around the corner. It could be your maintenance man up a ladder cleaning out guttering, when something heavy falls and injures a passer by. Or perhaps someone working on your premises leaves an obstruction on the public footpath and someone running by falls over it. Or maybe a visitor falls and injures themselves.
The legal costs of these claims can be high; so can the compensation claims involved. But your public liability insurance should cover it. And this could make the difference that allows the business to survive.
Bidding for Work
Having public liability insurance is sometimes a condition of a contract, especially for work in the public sector, and it is often required for joint ventures or contracts with larger firms. Without documented proof of your public liability cover, you may not be qualified to bid.
Loss of Earnings Cover
When you run a small business, public relations do not always go smoothly. If you are unlucky, unexpected happenings can get out of control and affect your reputation, and your profits. It is wise to have public liability insurance to cover such rare, but unfortunate, events if they should happen.
Why not have your outsourced bookkeepers review your public liability cover to check its relevance to your business? Or they could help you select from different quotes if you have to start from scratch.