New to the Small Business World? Why Public Liability Insurance Should Be Your First Buy


More people than ever have now decided to open up their own business as a result of the pandemic. They may have been toying with the idea for some time but may now have been made redundant and have few options. If you're in this position, you need to consider all the costs and risks involved and will need to ensure that you are as protected as possible. In particular, if you need to think about public liability insurance, what do you need to know?

Always a Risk

If you intend to open up commercial premises of some kind or provide a service to other people, then this type of insurance is highly recommended. After all, the mere act of performing the services or inviting other people onto your premises can be potentially risky, should something happen.

Many Challenges

In this case, you may face several different but equally tough challenges:

  • Somebody may sue you for injury, damage or loss caused by your inattention, failure or carelessness.
  • They could walk into your premises and trip over a loose floor covering or a tool, and you may be found liable as a consequence.
  • You may be called by a customer to fix a problem in their home or place of work, and due to a mistake made by you or your employees, could suffer damage.

Significant Risk

In each case, the plaintiff may have to prove that you were at fault but to do you really want to take that risk? Accidents do happen, and even though there may not have been any intent, a court could certainly find you at fault and award damages.

The Sky Is the Limit

As you can imagine, these damages could be substantial. A plaintiff may claim for loss of earnings, loss of functionality, stress, hardship, medical bills, legal fees and other costs. Would your organisation be able to pay those costs in such a situation, and what would happen if you had to face several different claims?

The Only Approach

As you can see, public liability insurance represents the common-sense solution. After all, the insurance company will take the risk and will also take care of the legal defence as and when needed. You simply need to negotiate the premium and make sure that you keep up with the payments, and can then operate successfully and with much less risk. Don't forget, a new customer may require you to have public liability insurance coverage before they will engage your services, so this is another reason to get it right at the outset.

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