If you are running a business then you are subject to a number of different circumstances that might serve to run you into the ground. Let’s say that you run a retail store and sell various products up to and including power tools. Because power tools are dangerous, there is a chance that a customer will become injured in your store. You can take all of the necessary precautions and lock the tools in secure containers, but at some point a customer may become injured or even fake an injury to gain a settlement of some type.
You also run the risk of being sued by former employees in some cases and you need to be prepared for this. You can create standards for your employees and you can ensure that they are treated fairly, but there could be an instance where someone simply does not follow the rules, or it may be that they are making false accusations.
If you have some sort of public liability cover however, you will generally not need to worry about these problems quite as much. It’s true that the customer or former employee may win and if they do then someone will have to be paid. You do NOT have to let this run you out of business however! Many companies simply go under due to the massive payouts required in such cases, but if you have liability cover you can expect your cover provider to take care of the costs.
You might even find that there was no human element involved in the initial problem. You could have a natural disaster such as a flood or even a tornado. This can wreak havoc on your business, destroy property and even cause injuries. If you run a business which involves client owned equipment, then losing that equipment can be devastating.
One really should not blame the clients for pressing charges as they need to retrieve the value of their items somehow, but if you have the right cover you can offset this and in the end everyone will get what they need. In addition to covering legal costs for the claimant, you can be assured that your legal costs will be covered and you will have any lost wages replaced.
Make no mistake, it will not be cheap to keep yourself covered with public liability insurance, but it will be well worth it. Many companies and corporations ignore this particular type of cover thinking that they will either never be sued or that they can simply cover the cost. Do not fall into this trap! Make sure you have a decent amount of public liability cover so that you do not become subject to the various pitfalls that other businesses tend to become a victim of.
The right public liability insurance will guarantee that your expenses are paid and your wages are taken care of whether they are immediate wages or wages that will occur in the future assuming that they would be interrupted in the first place. This is extremely important, so make sure that you have the right insurance at the right time to prevent the wrong outcome.
By Sydney Leman