Tuesday, 17 January 2012

Public Liability Insurance – A Big Cost To A Small Business?

Owning a small business isn’t as easy as it used to be. It’s long been acknowledged that we now live in a society who are very conscious of their rights, and as such small businesses really can’t neglect health and safety. Whilst this is a good thing, businesses around the UK also have to contend with unfair allegations – leading to potential court proceedings. Whilst a healthy respect for health and safety is required it’s also vital to consider a public liability insurance policy – you could say that it’s the first step to protecting your business.

Many have said that we live in a nanny state, protected and wrapped in cotton wool from day one, where everything is insured or has some form of legislation attached to it. This may well be true, and it is always a good idea to make sure that you and your business are as protected as possible in this complicated and unpredictable day and age.

If you own a business, then it is a good idea is to take out public liability insurance. In fact, for many businesses it’s essential protection to ensure they’re covered. Liability claims are commonly associated with very high costs to businesses. Whilst the type of cover you need may differ from one business to another, the same fact remains – huge bills and huge costs can cripple you whether you are a small or large business.

It is worth bearing in mind that the world we live in is filled with companies who offer no win no fee legal representation, meaning that anyone with a semblance of a case can take it to court. Whether or not the claimant is justified in their actions is largely irrelevant to your business – the costs required to protect and represent your side of the case can be just as damaging for your bank balance no matter which way the “verdict” sways. Public liability insurance, dependant on the level of your cover, will protect you against and cover for these costs (unless the business is negligent in any way) including settlements, meaning that your business can afford to carry on.

If you decide that public liability insurance is right for your business, then you should research what level of cover matches the style of your business. By assessing the type of business you are involved in is a good place to start. Always make sure you investigate every option fully. While £1 million worth of liability cover could suit one business, others may need to consider more.

The world isn’t as straight-forward as it once was, so it makes sense to try and reduce your costs - public Liability Insurance is a significant step forward to ensuring your business is protected.

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