Small Business Liability Insurance
Accidents happen, even to businesses. And with the potential for those accidents costing tens or hundreds of thousands of pounds to put right or paid out in compensation to those affected, the consequences can lead to claims on the business that could force it into financial ruin. This makes small business liability insurance an essential safeguard.
The number and variety of possible accidents is boundless. It could be as minor as wet paint on the banister rail that leads to a dry-cleaning claim from a member of the public; it could be as major as an employee rupturing the water main that floods a whole block of other business offices. Anything being carried out for or on behalf of your own small business that causes loss or damage to others – clients or members of the public – can lead to potentially crippling claims from those affected.
Small business liability insurance is designed to provide indemnity against a huge range of claims involving damage to the property of third parties or for their injury or even death. The cover typically provided, therefore, needs to be for a seemingly very large sum in order to cover practically any eventuality. Cover of up to £2 million public liability is generally deemed necessary. Although there is no legal requirement for such cover, most small businesses will find it practically impossible to run without it.
Many contracts for the supply of goods or services, for example, will require that such public liability insurance is in place. This is not just a question of superfluous contractual fine-print; if a business has to bear the cost of any third party claim it receives against it, this can seriously undermine the company’s financial standing and, ultimately, of course, its ability to continue to deliver contracted goods and services.
The particular type and level of cover appropriate for your business will, of course, depend on the size of your business and the areas in which it operates. Many businesses find that the advice and guidance of a broker specialising in small business liability insurance can be particularly helpful in identifying the most suitable policy and at the most competitive rate. A competent broker, for example, will be able to advise whether your business would benefit from any of the optional additional features included in many such policies and will also, of course, be able to help you compare the different claims procedures between one insurer and another, in the unfortunate event that your business needs to make a claim.
