While it may not be mandated by law, there is still plenty of reason to have public liability insurance for your business. Some of the reasons below may seem obvious, but others are more obscure.
Regardless, here are the four best reasons to get or update your business’s public liability insurance policy today:
- Avoiding Financial Ruin
If you lack public liability insurance coverage, one small mishap could cost you hundreds of thousands of pounds. As if the legal fees were not onerous enough, any resulting medical bills can force smaller operations out of business entirely. In most cases Public liability insurance covers the costs of both the legal battle and any medical bills freeing your mind to focus on your business instead of ongoing legal and financial nightmares.
- Boosting Your Company’s Reputation
Clients and customers alike often look for businesses that are fully insured in case something goes awry. If you submit a bid for a construction project or apply for a government contract, you may be rejected if a competitor has better insurance than you do. Prospective customers may also associate carrying insurance with being a reputable company, generally the only kind of company they are interested in doing business with. Your best chance of getting hired is to have public liability Insurance in place with the appropriate level of indemnity cover.
- Protecting Your Customers
As a business owner who frequently deals with the public, you have both a legal and moral obligation to protect them to the best of your ability. Part of this is to give your clients peace of mind, but they frequently do not think about insurance until it is too late. Business owners can easily fall into the same trap, but your business cannot afford to take on the resulting risk. An adequate insurance policy ensures that your customers can get the compensation they need and deserve should you do something that negatively impacts them.
- Accidents Happen
While you should always guard against causing harm to your valued customers, a problem can still arise even if you follow all of the appropriate health and safety measures. Businesses can go long periods without accidents, but one is bound to occur eventually. You cannot afford to jeopardize your livelihood by becoming complacent about the risks associated with your particular line of work.
Hopefully, these reasons and examples have convinced you of the importance of public liability insurance for business. This type of insurance policy can be easily overlooked until you need it, at which point you realize just how important it is.