If you own a business it’s likely you’re interacting with members of the public on a daily basis. Even if it’s only the delivery man who pops in once a week, if he slips on a wet step in your reception area and breaks his leg, you could have a problem you didn’t even see coming.
Before you know it, you’ll be hearing the words “public liability insurance”. It’s likely you won’t have a clue what this is and your delivery man will have his attorney on the phone while he’s being wheeled off to the hospital!
Then, while you’re trying to fathom out what to do next, you could get a call from your store’s cashier about a pallet of boxes that have fallen on your supplier’s bakkie, damaging the windscreen – and he also has his attorney on the line!
Many business owners don’t take the time to understand business insurance solutions like public liability insurance.
Basically, this insurance covers compensation payments and legal costs if a member of the public (customers, suppliers, passersby) take legal action against your business because they’ve been injured on your premises or by a product you manufacture, or their property has been damaged by your business.
It’s a common form of protection for small business owners but getting this type of cover isn’t a tick-box exercise, so make sure your policy suits your needs.
As the consequences of a public law suit can be detrimental to your livelihood, don’t skimp on public liability cover. A few extra rand a month for premium cover is better than wishy-washy cover which won’t actually cover you when you need it most. Essentially, when deciding how much public liability insurance you need, it’s best to seek professional advice.
Things to consider about public liability insurance:
What you end up paying each month will depend on the type of business you run, the risk factors involved and which type of policy you choose to protect yourself.
It doesn’t cover employees. It’s an insurance product intended to protect you from third party claims by a customer or other members of the public.
It’s not a legal requirement, but as far as business insurance solutions go, public liability insurance could be the difference between keeping your doors open, or shutting down for good. Depending on the nature of the claim, you could be hit with a massive lawsuit by a member of the public for injury or damage.
Don’t ignore the risks just because you’re a small business. Spilling coffee over a client’s laptop or a loose floorboard causing someone to trip and fall could end up costing you a fortune. Get the right insurance for your business today.
Chat to one of our specialist brokers on 044 382 0550 for more advice on finding the right insurance for your business.
* This article is provided for informational purposes only and should not be construed as legal or financial advice.