If you've recently started your own business, then chances are your 'to do' list is looking pretty scary right now. And however much you might want to avoid them, there are inevitably some administrative hurdles you need to overcome in the early stages. One of these is sorting out your public liability insurance.
In 2013/2014, the UK government's Compensation Recovery Unit recorded over 103,000 public liability claims, up from 94,000 in 2010/2011. Meanwhile, last year liability insurers paid out around £6m every day to protect businesses from these types of claims.
Public liability insurance will cover your business if a client or member of the public suffers a loss or injury as a result of your actions, paying any legal and compensation costs so you don't have to. Even if you don't host clients or members of the public in your office, you could still be at risk when you or your employees visit clients' offices or attending industry events.
You should keep an eye on your PL cover over time, as the level you need is likely to change as your business grows and evolves. This means reviewing your needs on at least an annual basis, or you could be in for a nasty shock if anything does go wrong.
Here are a few reasons why you might need to review your public liability insurance:
Your team grows
As you take on more employees, including temporary workers, contractors and volunteers, the risk of public liability claims becomes greater.
Your business travels with you
Attending exhibitions and conferences is a great way of getting your name out there, making contacts and growing your customer base. But attending these events also means there's a greater chance you could be held liable if you cause an accident or injury to another member of the public. If this results in a claim, public liability insurance will make sure you don't foot the bill.
You work with bigger clients
Winning bigger clients is a sign that your business is going places. But bear in mind, that in general, the bigger your clients, the bigger the potential liability. So if you're winning big, take a moment to review your level of your cover, making sure it's sufficient for your needs.
It's becoming increasingly common for organisations to stipulate that their suppliers have public liability insurance as a condition of working with them. In this situation, it's a no brainer and could be the difference between gaining that dream client, or watching them go to a competitor.
You are moving office
Whether you're a start-up upgrading from the kitchen table, or a more established business looking for a step up, if anyone should injure themselves in your new home, you could be held liable.
Not sure how much cover is enough for your business? Then pick up the phone or drop us a line to have a chat and find the best policies to suit your individual circumstances.
Call us today on 0333 772 0759 or send us an email.
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