Reasons Why Public Liability Insurance is Equally Mandatory for Small Businesses

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Owning a business or being self-employed automatically brings risks. As long as your business interacts with the public and customers, you ought to insure it to help cater to some risks. Here are viable reasons why you need to protect your business.

Every business endeavor comes with unique risks. Examples of common risks are; if a client comes to your office, goes up the stairs and slips on a slippery floor, if a client walks by your premises and your business signpost falls on them or when a member of the public gets injured in an event your business is hosting.

This should bring to your attention the need for public liability insurance. It is the best solution available to protect your business from such risks. The policy protects your business from further costs for a lawsuit initiated by a public member. They are common in Australia and other countries whereby many entities use commercial general liability insurance but still use the PLI policy.

If your business often comes into contact with the general public regularly, it could cause injury or damage to a client if; you work at client businesses or in their homes, if you work in society or if your customer visits your business area regularly.

The policy covers bodily injury caused on your property as well as outside your business areas like parking lots and walkways. It also covers property damage to someone else’s property when they are on your premises or when you are handling work at their premises. For instance, if a painter is working on a client’s home causes some damages to windows; it can be catered for by the cover.

It also covers legal expenses such as the cost of hiring and paying a lawyer to represent you in case there is a lawsuit presented by a customer. If you own a small business such as bookkeeping, gardening, marketing and advertising and, consultancy, you are encouraged to purchase the public liability policy.