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Why holding public liability insurance matters

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Running a successful business involves delivering a great product or service to your customer exactly when they need it at a price that they are happy to pay. If you can meet these conditions then your business will grow. However, while you may strive for excellence on every occasion most of the time there is always the potential for something to go wrong. While most minor problems can be corrected with an apology or the skilful intervention of your customer services team some things are more serious and could lead to legal action or a claim for compensation against your company. 

Here, read on to learn more about why it's important to have public liability insurance. 

1. Understanding your liability

Any interaction between your company and the general public could be the basis for a compensation claim and the more interaction you have with the public the more risk there is of a claim. If you visit clients at their business premises or homes or if you have clients who come and see you then you could find that you receive a claim for injury, loss, or damage resulting from your actions. Maybe, it is alleged that your premises were not appropriately safe for visitors. Perhaps work you carried out for a client resulted in damage to their property or you left out tools and someone fell over them? Whatever the issue may be, you could be facing a hefty bill for compensation. To deal with eventualities such as these it is always advisable to take out pubic liability insurance.

2. Must you have public liability insurance?

There may be no legal requirement for your company to carry public liability insurance but on a practical level, you could find it difficult to maintain your company without such insurance. Often, you will find that clients insist on you hold public liability insurance before they will work with you, this is especially common with public sector work but could be the case with any contract.

If you belong to a local trade association or professional organisation then you could discover that possessing public liability insurance is a condition of your membership. The level of insurance you will be required to hold will depend on the nature of your business and how you interact with the public. It is always worth carefully checking any agreements or contracts you have signed to see if they specify any level of public liability insurance.