County Down Outlook - Features - Public Liability Insurance is One Thing You Shouldn't Overlook

Features

Public Liability Insurance is One Thing You Shouldn't Overlook

Tuesday, 24 August 2010

There are many things you have to think about when starting a new business. It's an exciting time but also one where you have to be well aware of the challenges that lie ahead. To get your business off the ground you'll need to take care of many small, but essential details. One of these is professional indemnity insurance, as covering your business will be one of the most important things you ever do.

It's not something you'll want to think about, but it is possible that claims will be made against your business. This could be due to the quality of your work, mistakes that you've made or damage that you've caused to the property of clients. All three of these scenarios could result in action being taken against your company and if this situation were to arise, it would be essential that your business is covered by the relevant insurance.

Claims against businesses are something that is becoming more common. This is due to the availability of no-win-no-fee legal services, for which it's likely you've seen many advertisements on the television. This availability of cheap legal services has made people more willing to take legal action against organisations and has contributed to the claims culture that has started to develop in the UK.

It is vital that your business is protected against this, which first requires you to invest in public liability insurance. As individuals are more likely to file law suits, protecting your business against claims made by the public has never been more important. You might be surprised at how little it takes for someone to make a claim against you, with many people really believing that where there's blame, there's a claim.

However careful you are as a business, accidents do happen and there's no way you can prevent that possibility. What you can do as a business, though, is ensure that when an accident does occur, your company will not have to bare the brunt of the losses. That could be catastrophic, especially in these financial times, and by taking out the necessary business insurance you can make sure this isn't the case.

There are few businesses that don't carry out work that results in them interacting with members of the public. Whether you're starting up an IT consultancy business or a company that specialises in engineering, you and your employees may be required to visit clients' homes to carry out work. It is in these unfamiliar environments that accidents are more likely to occur, however vigilant you are.

If you are visiting a client's property to fix their computer and accidently cause damage to their home then you're liable to a claim. Even the simplest act such as knocking over a vase could result in a claim that runs into hundreds and possibly thousands of pounds, money that you can ill afford to part with as a fledgling business. Making a profit is hard enough at the best of times, particularly when you're just starting out, so extra outgoings could well set you and your business back substantially.

Even if it isn't you who caused the damage but one of your employees, their misfortune could still trigger a claim against your business. Ultimately it may be your business that is at fault and thus would have to pay the level of compensation that is set. If you feel the claim to be false, defending it can still be a costly process and this is something you can ensure that your business insurance covers.

If you do employ staff, then your business will also need to invest in employers liability insurance. Even if you only have a small team of staff to begin, or only enlist assistance from a voluntary helper, if you are in charge of their supervision then your liability as an employer could still be triggered. The result of this is that your business would be liable to a claim if your employee was injured or fell ill, something that could cost your company thousands of pounds.

As a business that has employees, it is a legal requirement that you take out employers' liability insurance. Whether your members of staff are full time, part time, permanent or temporary, you could be liable for a significant fine if your business doesn't have adequate cover. The relevant insurance will protect your business against any claims made by your employees, covering the necessary legal and compensation costs.

The availability of no-win-no-fee legal services has increased the likelihood of a claim being made against your business by an employee, as well as that of one from a member of the public. You may be wondering how such a claim would arise, but any accident or illness suffered by one of your employees that they feel came as a direct result of their work could result in such a situation occurring.

One thing to take into consideration as well is that it doesn't matter whether you have an office or not. This is a situation that more and more businesses are finding themselves in as they look to try and minimise overheads and your company could be one of those.

Not having an office does not exclude your business from the possibility of being subjected to a claim from one of your employees, though, as no matter where they are carrying out work for you, your business is ultimately still responsible for their wellbeing. Getting the right insurance will give you peace of mind that your business is protected both inside and outside of the workplace.

It is important that as a business you protect yourself. Getting the right cover in the form of business insurance will leave you assured that you're protected should you be liable to a claim made against you. This will allow your company to go about its business as normal, not having to worry about the possibility of a claim and putting that scenario firmly to the back of your mind.