Public Liability Insurance & the Small Business

Part of being a small business owner is not only working to grow your business, but also being able to protect it. In order to do this, there are various kinds of business insurance policies to protect your business from potential risks. One risk that can endanger your business relates to members of the public or customers coming onto your business property. If one of these individuals should become injured or sustain damage to their property, they may file a claim against you. Public liability insurance protects you as a small business owner from such claims.
Public liability insurance can cover a variety of damages that a small business would need to pay out to the third party. This can include any monetary damages awarded to the injured party. Without public liability insurance, a small business would be forced to pay this expense out of its own pocket. This could lead to the end of the business, as these damage amounts are typically staggering. Public liability insurance will also cover any legal fees incurred by the small business for defending themselves against the claim. The legal expenses may also be incurred as the legal representation for both parties to try to negotiate an agreement.
As part of taking out a public liability insurance policy, this coverage can be extended. For instance, in some businesses, employees must go onto the property of clients. Should there be an injury to the client or their property on their own premises, then the small business is still legally responsible. For instance, if your small business is a plumbing business, the staff will be going into other homes and businesses. Should they damage property in the home, the public liability insurance would cover it. Also, if they leave a tool out and the customer trips, a claim may be made. Public liability insurance would also apply in these situations.

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