How big can personal injury claims get?
A landmark case was Anderson vs. General Motors which resulted in a final verdict of $4.9 billion against the motor company. The claim was based on an accident that was not the direct result of the motor company.
A drunk rear-ended the Anderson family’s car which then burst into flames. The fault of the motor company was a poorly designed fuel system. When you read the case, how do you feel? Do you feel justice for the family? Most likely.
What about if you are a business owner?
Despite the best intentions in the world, there are some things you cannot foresee. Those unforeseen mishaps can prove very expensive.
Every time someone brings a claim against your business it is going to cost money either directly or indirectly. Here are seven times you’ll be glad your business has public liability insurance. First though…
What is Public Liability Insurance?
In the everyday operation of your business, there is an ongoing risk that one of your clients may hurt themselves or suffer some form of loss while using your business location or while using your business service. When that happens they may bring a claim against your business for compensation.
Public liability insurance will come into operation under those circumstances and protect you from a false claim, while at the same time protecting your clients. If they have been injured as a result of your business operation, then they deserve fair compensation.
Now that you know what this type of insurance is, here are 7 reasons you will be glad your business has it.
1. Legal Costs
Legal fees can be very expensive. An estimate of the hourly rate varies between $250 to $600. It does not take long for your legal bill to start to reach into thousands of dollars. Of course, it depends on the case and the nature of the claim. Whatever the cost, public liability insurance will take care of your legal costs.
That should give you enormous relief and peace of mind. This is especially so when small claims can escalate into even bigger claims due to the accumulation of legal expenses. Some of the most famous cases such as Apple versus Samsung lead to billions in legal fees.
2. Protects Your Business
There are few businesses that can weather a legal bill extending into the hundreds of thousands of dollars, let alone millions of dollars. Public liability insurance is an excellent way to mitigate the risk of the unknown.
That is part of the point of accidents. Even though some accidents can be prevented or even predicted, in the main, accidents occur through human error. People will always make mistakes because no one is perfect. Public liability insurance will protect your business from the unknown. It can make the difference to your business surviving and thriving or going under.
3. Protect Your Clients
When accidents happen, they may not be your fault. Yet, they may not be the fault of your client either. However, the difference is that when you offer a business service you are the one who is taking responsibility for what occurs to your client when they are engaged with your business in some way.
This is part of what they are paying you for. They are paying for a good experience in which they will be satisfied. Within reason, that is what you are offering them. If something happens in which they are hurt or suffer a loss in some way, they have a right to be compensated. Public liability insurance protects your own clients in these circumstances.
4. Protects the Public
There is a multitude of circumstances whereby, someone may not actually be a client of yours but may still sustain some kind of injury or loss as a result of your business.
Members of the public who do not have any expectation on your business per se, yet by virtue of your business operating in a public place, these people may have reason to file a lawsuit against you. Once again, if those reasons are legitimate, it is both responsible and desirable to fairly compensate them. Public liability insurance will take care of that.
5. Good Business Sense
If your business is not adequately insured it may raise serious questions about your ability to run your business sensibly. Proper insurance is an outward sign that you take your business seriously. You have a sense of responsibility to yourself, your clients and the public.
It instills trust and confidence in your business from your potential clients. A business that is insured will likely be operating to the correct standards of care and service. If not, then insurance may not even be possible. It suggests good documentation and evidence of good practice. In short, public liability insurance just makes good business sense. You can find more information here.
6. Help You To Win Contracts
If you are bidding for a contract you want to win. Winning contracts is an excellent way to do business. It is a mechanism for establishing you are the right business for the job. To win the contract though, you need to be well informed and skilfully match your service to the client’s requirements.
Here is an example of the sort of questions you might be asked if you are offering project planning and work in the architectural industry. Of course, the principles apply to many sectors. You will also find that many contracts require public liability insurance. It is no surprise as your contract owner will want to protect themselves also.
7. Protect You From Being a Target
It is sad to say that from time to time you may be a target for someone looking to make an easy dollar. One man tried to sue his dry cleaners for $67 million because his pants went missing. True, he was unsuccessful but can you imagine how stressful that would have been without public liability insurance.
Is it Worth the Risk?
Public liability insurance need not be expensive and it can give you a whole lot of peace of mind. No one knows the future and everyone makes mistakes. The longer your business operates the potential for someone to bring a lawsuit against your business just increases.
Make sure you get your business insured so you can protect yourself, your business and others. Check out some of the other brilliant tips for businesses here.