Small business public liability insurance is essential for every small business to have because it is designed to protect both the general public from any harm or damage caused by using your business or services and to protect you the business owner.

Why the Public need to be protected by Public Liability Insurance:

Members of the general public need to be protected by an independent body who accepts responsibility for ensuring that no harm will come to them physically or financially from using your business or from visiting your business premises.

Small business public liability insurance is the insurance that a small business contracts with an insurance company to provide. The insurance company provides this financial coverage contract for a small business based on the information provided to them by the small business. This is a contract to supply and any dishonesty on the part of the small business by not providing relevant information to the insurance company that could affect the contract will render the insurance policy with the insurance company “null and void” and the insurance company will not be required to honour the contract or to be held responsible for any financial compensation to be paid.

Unforeseen events and accidents happen that a business has no control over. This is unavoidable and if a member of the general public is adversely affected in some way by these events and they happen on a small businesses premises, then the business will be legally responsible for any damages.

Most small businesses aren’t wealthy or in a financial position to pay out financial compensation to any member of the general public if they suffer harm through dealing with their business so they contract with an insurance company via a small business public liability insurance to provide this coverage and to ensure everyone’s financial well-being.

The insurance company accepts this contract to provide financial coverage for a small business based on the grounds of full disclosure and an annual premium being paid either in full each year or by regular monthly payments. As long as the premiums are paid the small business is covered for public liability insurance.

Why Every Small Business needs to be protected by Public Liability Insurance:

Events happen in life that people have no control over. These accidents can be life-changing and extremely detrimental to someone’s wellbeing either physically or financially. When things go wrong there is usually a financial cost to deal with the event and most small businesses are not financially viable enough to handle the high costs associated with these accidents.

Often accidents can start with something small and totally unexpected and that is why small businesses need public liability insurance.

For example, if you were an electronics or fabric retailer and a previous customer was eating grapes in your store. If they had let a grape fall and it had gone unnoticed by everyone, and if that grape causes a person to slip over and damage their back. The grape may not even have originated from your premises but the accident did happen on your premises. This will make your small business liable for any damages and financial compensation. That example is a simple one but perhaps it illustrates the need for a public liability insurance coverage to be provided both for you and the unfortunate victim.

Every business owner also needs to be protected from the scam artists and serial claimants. There are some low-lifes in this world who make a living out of false and fraudulent insurance claims against small businesses.  The insurance industry now keeps a registry of every claim made and paid out on to try to combat these individuals in order to protect themselves and all their clients from this despicable practice.

Small business public liability insurance is designed to protect the public from harm and to keep a small business in business.