5 Reasons Why Small Businesses Need to Consider Public Liability Insurance

We never want to think about something bad happening to or on our business premises, but we also need to be prepared for that eventuality. Small businesses, in particular, won’t have the funds available to pay for the costs should something go wrong, so getting insurance to help out in case of an accident is the smart way to avoid any complications down the line. For many businesses, public liability insurance is a must. Could it be for you?


What is public liability insurance?

Public liability insurance, also known as general liability insurance, offer coverage for legal or compensation costs should a customer start a lawsuit against your company as a business owner. This can apply for a range of situations; see below for anything that sounds like it could apply to your business. If it does, then taking out public liability insurance from an insurance company should become a serious consideration for you.

To protect from legal costs

If you offer services that could leave you and your business open to being sued, then public liability is definitely a form of business insurance that you should consider taking out. Legal costs can stack up quickly and backing from a liability insurer can make sure that a small mistake doesn’t cost your business dearly in the long run.



For public-facing businesses

If you regularly welcome customers and members of the public onto company property, general liability insurance is also well worth considering in case any accidents happen on your premises. You could be held liable for personal injury or accident costs as a small business owner, so make sure you have an insurance policy that will protect you in this instance.


For work taking place on customer property

If you are a contractor or work with small businesses, like a plumber or electrician, who works extensively on or with customer property, then damage or accidents in these cases can also be covered by general liability insurance. For any small business owner, accidents can happen, but they shouldn’t cost you all of your business savings. General liability can protect you and the future of your business from the mistakes of yesterday.

For businesses with increased risk

If you sell alcoholic beverages or something else that could increase the risk of damage or accidents on your property, it’s even more important to make sure that you are adequately covered. Everyone knows that customers and patrons can become unruly after alcohol consumption, regardless of the amount of alcohol. If that is a common occurrence for your business, then take extra precautions accordingly.


For product or good manufacturers

If you manufacture goods or products to sell, then public liability insurance can also protect you from any costs or damages associated with the packages that you sell. Look into what exactly your public liability insurance covers to make sure that it does what you need it to do. Vendors and retailers may need different specifications than a bartender, so be sure to read the fine print and work with an insurance agent that you trust.

If you can see any of the risks listed here associated with your own business, then a general liability policy is definitely worth considering. You might think that the worst will never happen to you, but at the end of the day, it’s better to be safe than sorry. Instead of trying to cut corners on costs for insurance, think about what high costs you could save on (should it ever come to legal costs) or need to claim from your liability insurer. If it does reach that point, you’ll be glad you paid the extra insurance costs now.

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