Public Liability Insurance Myths to Remain Aware Of

Insurance Blog

Are you considering public liability insurance? Or, maybe you don't have it, but you're wondering if you should? As an area of insurance that can seem mystifying at first, it's often surrounded by myths. Before you begin looking through potential policies, here are a few you need to know about.

It's Always Necessary 

Working with the public doesn't mean you need to have liability insurance. Some businesses and professionals don't require it at all. In other cases, you may need it to maintain the license that's necessary to operate your business. If you find that you don't need it, consider whether it would be to your benefit to have it anyway. If someone can bring a case against you if they come to harm as a result of your services, having insurance pays dividends. It ensures you can cover your legal costs and may protect your business' finances.

Closing a Business is Easier

There are some claims where a company or sole trader is clearly at fault. When such circumstances arise, you may feel as though it's easier to close your venture rather than respond to the claim. Some people do that using the logic that a non-existent enterprise can no longer have claims brought against it. However, even if you do close your business, you're likely still liable for the claim. The best course of action is to secure defence in anticipation of such claims by taking out the right form of insurance.

Covering Claims is Easy

On the face of things, it may look as though you can cover a potential claim with your business's existing funds. However, unless you're familiar with the nature of public liability law and the extent to which costs can amount, this is a dangerous assumption to make. A successful claim can see you paying everything from a person's loss of earnings to lifelong costs when they face excessive injuries. As such, a claim that's successful could place a serious dent in your finances and harm your company's reputation. Having the right insurance ensures you can access legal assistance from the start and find money to support yourself.

New Insurance for New Contracts

Unless a contract you're taking on is significantly different or riskier than one your insurance already covers, you may not need new insurance. However, you should still speak to your insurance provider so they can tell you of any adjustments you need to make. Regular assessments of your insurance needs can ensure you have the right amount of financial coverage too.

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14 October 2022