Any business, whether large or small, may want 10 million public liability insurance or more. This is to protect against compensation claims brought against the business, its owner, or employees. It also covers legal costs of the compensation suit, medical, and transportation costs for injured parties.
These claims may be due to injury or death to persons while at your business premises. They may also arise from damage caused to property in the course of your business activities. Although different cover limits are available, the liability insurance cover is a great option for small and medium-sized enterprises.
Public liability insurance offers protection to the business from expensive lawsuits that can totally ruin the business financially. Liability claims can run into millions, sending a great business into insolvency. This loss can only be mitigated by an adequate cover from public liability insurance. This is why public liability insurance for any business is highly recommended for all business owners in the UK.
Furthermore, businesses are exposed to class action suits, which may involve hundreds or even thousands of litigants. The financial fallout from such a compensation claim and its legal costs can be immense, even for a large business. Negligence suits make a business especially susceptible to huge compensation claims and other punitive financial measures.
This is a crucial consideration when deciding on your ideal cover limit. Several factors will determine what limit is adequate. Being under-insured can at times be as risky as not having insurance. This is because any compensation amount above the policy limit will be offset by the owners and the assets of the business itself.
Businesses in high-risk sectors such as chemical or petroleum industries may require a much higher cover limit. This is because the potential injuries and damage to property can be extensive if an incident occurs. A high policy limit will be required to cover all the compensation claims occasioned by such accidents. Government and local authorities may also stipulate a minimum insurance cover to meet the conditions of a contract.
Generally, business premises frequented by many members of the public such as clubs, hotels, and large department stores require high public liability covers. A lot of human traffic, especially where consumption of alcohol is involved, equates to a higher likelihood of accidents. This will normally result in injury or destruction to property.
However, any other business, however small, will need this type of insurance. For example, a small technician’s business that works in people’s homes also requires a public liability cover. Electricians, plumbers, gardeners, and other handymen are liable for any negligence resulting from their actions in homes, or business premises. Certain professionals may also be required by their clients to have a public liability cover. These include financial advisers, who may be exposed to negligence lawsuits from their clients.
It is important to note that public liability policies, including 10 million public liability insurance, do not cover damage or injury to the business owner, employees, and their property. This can only be covered by a business insurance policy.