Why have an insurance policy? Sure, you are not a multi-billionaire with multiple offices in Dubai, London and Tokyo (although thanks if you’re), but even you could need to take out some insurance to protect your business. In other words, if someone gets hurt on your property or gets damaged anything within your vicinity, your company may be liable for some legal fees or compensation claim. Are you ready to add the cost of liability insurance to your bottom line now? If not, read on…
Let’s start with the basics. Public Liability Insurance provides two main benefits for businesses. The first one is that it covers claims made against you or your company if somebody gets injured on your property. You may actually be covered even if the damage wasn’t your fault. In fact, it may be enough to cover you from paying for medical bills and the repair cost of any damage caused by your property.
The second benefit is that the insurance protects your assets and protects your business. Claims made by other people or third parties can be quite expensive, so the protection of your assets can help reduce the costs incurred. For example, suppose your company has hired an architect to build your office building. In case you get sued because somebody suffers an injury on the property, the insurance will cover the cost of medical treatment and any compensation claim you might make.
It is important to note that the type of legal claims covered by your insurance policy depend upon the type of accidents that happen. Commonly, the coverage kicks in when physical injuries are sustained. It can also cover injuries resulting from negligence, willful misconduct or deliberate acts. If you have staff that work outdoors, this is another reason why an insurance policy is very crucial.
The third party benefits are the ones that come as a result of accidents with no deliberate intent. This can include damages due to vandalism, malicious mischief, environmental hazards and injuries from assault, negligence, defective products and animal attack. It is also possible to have injuries brought about by your tenants or employees. As long as these incidents were not your fault and did not cause harm to anyone, third party injury claims will cover them.
An important consideration is that sometimes, insurance is needed even for legal costs. Public liability insurance claims are often necessary when you’re being sued by a third party who is suing you for something. The damages they can recover come from your pocket, so it’s best to buy it. The cost of the policy depends on the kind of coverage you want. Usually, the higher the coverage, the more expensive the premiums will be. You should consider what the legal costs could become for your business before deciding on how much compensation to buy.
If you own a rental property, you may need insurance to protect you against damages that occur from tenants. You’ll need to decide if the tenant is responsible for all or part of the property damage. If the tenant is responsible for a part, only that part will be covered by the compensation claim. It’s important to note that liability insurance is not just for tenants but also for landlords. If your landlord has a building on his or her property, he or she is also covered by the law and is held liable for property damage.
When it comes to accidents involving property, injuries or damage that happens to one person, one business entity or another, liability insurance covers claims made under its provisions. Small businesses may want to consider buying insurance for their property. However, if you run a small business, you must still examine the laws closely. Because there are many different types of insurance available, you should consult with a professional insurance broker to make sure you understand exactly which types of insurance a given business needs in order to be adequately covered.