Trade and public liability insurance is an essential component of any business, particularly for those just starting out. It offers protection against a range of risks and potential damages that a company might face. In this article, we will explore the importance of cheap public liability insurance for businesses and what it can do to protect a new company.
What is Trade and Public Liability Insurance?
Firstly, it’s important to define what we mean by trade and public liability insurance. Trade insurance covers the assets of a business, such as equipment and machinery, while public liability insurance covers the business’s legal liability to third parties, such as customers or members of the public. It is important to note that this insurance does not cover employees, as they are covered under a separate workers’ compensation policy.
Why you need Public Liability Insurance
When starting a new business, it can be tempting to cut corners and try to save money wherever possible. However, public liability insurance is not an area where you want to skimp. Not having adequate coverage can have severe consequences, including financial ruin and even bankruptcy.
One of the primary benefits of public liability insurance is that it can protect a business against legal claims made by third parties. For example, if a customer slips and falls on your premises and sustains an injury, they may seek compensation from your business. If you have public liability insurance, the policy will cover any damages awarded to the injured party, as well as any legal costs incurred.
Without insurance, your business would be responsible for paying for any damages out of pocket. In a worst-case scenario, this could be a significant financial burden and could potentially bankrupt your business. It’s worth noting that some clients or businesses may require you to have public liability insurance before working with you, so having it in place can help you win more business.
Another benefit of having public liability insurance is that it can cover the costs associated with damage to third-party property. For example, if your business causes damage to a customer’s property during a job, public liability insurance can cover the cost of repairs or replacement.
Having public liability insurance can also help to give your customers peace of mind. By demonstrating that you have adequate coverage, you are showing that you take your business seriously and are willing to take responsibility for any issues that may arise.
In addition to protecting your business against legal claims and damages, public liability insurance can also provide a range of other benefits. For example, many policies include access to legal advice and support, which can be invaluable if you ever need to navigate the legal system.
Finding the right insurance for your business
When it comes to finding public liability insurance, there are a few things to keep in mind. Firstly, it’s important to shop around and compare policies from different providers. This can help you find a policy that offers the coverage you need at a price you can afford.
It’s also worth considering the level of coverage you need. While it can be tempting to opt for the cheapest policy available, this may not provide adequate protection for your business. It’s important to carefully consider the risks your business faces and choose a policy that provides comprehensive coverage.