Why Public Liability Insurance Is Important For Small Businesses?

When you own a business, you are vulnerable to all sorts of risks, including claims and lawsuits. You need to protect your small business from the costs brought on by the damage or injury at the workplace or even offsite. One way to do it is to have public liability insurance. 

Know that public liability insurance does not cover the claims made by your employees, but only those from external parties. 

Why Do You Need Public Liability Insurance?
While you are not required legally to have public liability insurance, you should consider buying one if:

• You have a home based business, wherein clients visit your house from time to time
• You host or organize events
• The public go to your business on a regular basis
• You have a stall at a craft fair or marketplace
• Your workplace is accessible to the public, for example, on the street

What To Look For In Public Liability Insurance
The requirements of your contract. Find out if your clients need a specific cover level. Before tendering for work, the authorities typically request for a minimum level of cover up front. So, it is essential to check if the insurance can fulfill the requirements before you sign any contracts.

Cover level. In this case, your insurance company will pay a maximum amount. If your business is highly exposed to the public, it is better to obtain a higher cover level. 

Business activities covered. Determine what activities are included in your policy. Also, know if there are certain exclusions that can affect your insurance. 

Loss of work compensation. This is beneficial in the event that you are unable to go to work for a certain period because you need to go to court.

How Much Does It Cost?
The cost of public liability insurance depends on these common factors:

• The business industry
• The claims history
• The insurance company

If your small business deals with more risks on a day-to-day basis, you usually get higher premiums. Make sure to provide all the necessary details so the insurer can offer a policy that is most suitable to your business. 

Conclusion
Whether you are at fault or not, your business may still suffer from the court and legal costs while you are trying to defend yourself. Protect your business with public liability insurance.

At Oncken Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (281) 256-8310. You can also request a free quote by CLICKING HERE.