Public liability insurance can turn out to be blessing in disguise in times of crisis - in this case, crisis implies loss or damage of property or physical injury to the customer or a third party when he is within the business compound.
Risks run high in businesses that deal with large volumes of public movement.
The risk is real even in shopping stores and malls and not just in places dealing with heavy machinery.
The insurance becomes helpful if the customer sues the business for a monetary compensation for the loss or injury.
To be prepared Problems usually come unannounced.
Anything can happen all of a sudden and you may find yourself in a legal mess.
However, the first step you should take in protecting yourself is to ensure that the damage caused is not intentional.
A customer cannot claim compensation from you by intentionally hurting himself or his belongings.
If such malpractices come to your notice, you can sue the customer back on harassment charges.
To fight lawsuits Lawsuits can be very harmful to a business.
Big lawsuits can even cripple a business financially and cause it to shut down.
This is a very practical risk and cannot be ignored.
Customers can file for a large compensation if the injury they incur is serious.
Loss or damage of property on the premises can also lead to huge law suits.
For example, if something of your store like a hoarding or a lamppost accidentally falls on a person's car and damages it badly, then the customers are bound to claim the compensation for the repair of the car.
If the condition of the vehicle is irreparable, then the claim amount may hit the roof.
In case of serious damage to health of a customer, you may also have to bear the medical expenses of the customers.
Moreover, it is not only your customers that you have to protect yourself from.
Any passerby may be hurt or his property damaged on your premises due to your assets and he can claim compensation.
In such situations, public liability insurance will save you a lot of trouble and money.
Public liability insurance covers risks and damages caused in the client's premises as well.
Covers legal expenses Legal expenses are covered under the public liability insurance.
Legal expenses include cost of the lawsuit, cost of defending yourself as well as lawyer expenses.
Attorneys and lawyers demand huge fees.
The best lawyers cost an arm and a leg.
However, in order to emerge victorious from the lawsuit, it is essential to hire an experiences lawyer.
If the case runs for a prolonged period in the court, which in most cases is a common happening, then all these expenses will increase.
Having an insurance policy will help you manage the finances better.
Risks of injury to customers or a third party is high in certain businesses like bars and pubs, where alcohol is involved.
A person intoxicated with alcohol may stumble over the seating arrangements on the floor and injure himself seriously.
The risks also increase in businesses where heavy machinery is involved like a mechanic store or a garage.
Such businesses may require a higher insurance cover since the frequency of risk may be high.
Provides peace of mind The biggest reason why a businessman needs public liability insurance is for peace of mind.
When he knows that he is protected and well covered by a policy, he does not have to worry about small mishaps.
Although accidents are stressful incidents, having a financial cover will help a businessman think clearly and deal with the problem more efficiently.
So, taking out an insurance policy to protect oneself against public liability is of prime importance.