Public Liability Insurance
Any entrepreneur must prepare in advance for losses that may occur in the course of their business undertaking. This is because accidents do occur to anyone leaving them with no time to act. Public liability insurance therefore is one necessity for any business. A small slip can let you down by claiming lot of pounds in case you don’t plan well. There are various circumstances that can call you to have public liability insurance.
Some include the following;
In case you have visitors or customers or suppliers who visit your business premise or office. A situation may occur when such people are still within your premises and result to losses to such people. They will in turn make claims from you. Secondly, when you have someone else working on your part, their actions may damage other people’s property resulting in them claiming from you. Thirdly, in case you are working for other people, you can cause losses while conducting such activities. In situations above, public liability ensures that you are always covered.
When taking public liability, one should always be vigilant in considering the amount of cover to take. Most public liability companies in UK charge premiums from £1 million which can sound a huge amount. However, in case you are a business person running a high risk business, this is considerably cheap in case an accident occurs. Small and Medium Enterprises are normally charged up to a maximum limit of £10 million for taking public liability cover. One risk that individuals are advised to avoid is the issue of under-insurance. This may even render you being not insured at the end. At some points, you may be covered under the local authority plan where there is a minimum set amount to pay say £5 million which serves as the minimum amount for meeting their term and conditions.
This is how to choose the right public liability insurance cover. First compare the various public liability plans available. Normally, the entrepreneurs who run large business organizations take those quotes with higher level of cover. Such businesses have higher contact with the third party individuals. Such individuals include those owning large shops, theatres, pubs and clubs. Another example is those owning chemical companies. In case you are an entrepreneur who works from home or office, you can consider taking a low level cover of public liability insurance policy. This is when clients do not visit you frequently.
Public liability insurance does not cover losses that occur to you, your property or even your workers. This is because such losses are covered by your business insurance cover. Various factors are taken into consideration when calculating how much premium you will be required to pay for public liability insurance cover. Some of them include the risks that you transfer to your insurer, level of insurance you need and the size of your business. It is advisable that you compare the various prices offered by various insurers before taking public liability cover. This is because there are a variety of them in the market currently.