More likely than not, your small business will likely run into problems eventually. Even if you take every precaution, you may not be able to prevent unhappy customers and clients, and in some cases, they may even file lawsuits against your business. A lawsuit can have a huge financial impact on your business, and some businesses may even be forced to close their doors because of it. This is why public liability insurance is so important. If and when a lawsuit does happen, you can use your public liability insurance as a buffer to protect your business.
Some of the clients you work with may be running their own businesses, which means your advice can greatly impact their bottom lines. If you’re an accountant, consultant, or a similar professional, and your suggestions unexpectedly result in lost revenue for your client, your client could decide to sue. However, if you’re covered by public liability insurance, your business will be protected from a potentially massive hit.
Your public liability also covers injuries that happen while on your property. If a customer slips and falls or trips over uneven flooring, your insurance policy will help cover medical costs and related expenses.
Keep in mind that this type of insurance only applies to members of the public. If an employee were to suffer a similar injury at work and require medical attention, they would instead be covered by workers’ compensation insurance.
Similarly, if a customer or visitor’s property is damaged while at your facility due to negligence or a mistake on an employee’s part or on your part, your public liability insurance will come into play. For example, if a customer stumbled on loose flooring, and their phone fell and broke because of it, your policy would cover the damage. If an employee damaged a customer’s car while helping load their purchases, your policy would take care of it.
Finally, in addition to paying for the lost revenue, medical bills, or property damage a customer sues you for, public liability insurance can also help cover your legal bills. Some people try to save money by representing themselves in court, but this is rarely a wise decision. Your insurance policy will help pay for a lawyer and the associated legal fees, and your attorney can represent your interests to help ensure that you’re held responsible for the lowest amount possible.
Small businesses, especially those just getting off the ground, often try to cut costs wherever they can. However, you should never skimp when it comes to protecting your business. Public liability insurance can help protect your company in case you are ever faced with a lawsuit from an upset customer or client.