Even Small Businesses Need Public Liability Insurance

Published on Jul 18, 2018
white arrow pointing left
Back to Media Centre

Suddenly, you hear the words “public liability insurance” for the first time. You don’t have a clue what this is and your delivery man has his attorney on the phone while he’s being wheeled to the ambulance.

While you’re still trying to fathom what to do next, you get a call from the store's department to alert you to the fact that a pallet of boxes just fell on your supplier’s bakkie, damaging the windscreen - and he also has his attorney on the line.

What now? It’s time to get your insurance in order.

Many businesses don’t take the time to understand business insurance solutions like public liability insurance.

Basically, this insurance covers compensation payments and legal costs if a member of the public (customers, suppliers, passersby) takes legal action against your business because they’ve been injured on your premises or by a product you manufacture or their property has been damaged by your business.

It’s a common form of protection for small business owners but with the various options available it is just as suited to big companies.

When deciding how much public liability insurance you need, it’s best to seek professional advice. Getting this type of cover for your business isn’t a tick-box exercise, so make sure your policy suits your needs.

As the consequences of a public lawsuit can be detrimental to your livelihood, don’t skimp on public liability cover. A few extra bucks a month for a premium cover is better than a wishy-washy cover which won’t actually cover you when you need it most.

Things to consider about public liability insurance:

  • What you will end up paying each month will depend on the type of business you run, the risk factors involved and what type of policy you choose to protect yourself.
  • It doesn’t cover employees. It is insurance intended to protect you from third-party claims by a customer or other members of the public.
  • It’s not a legal requirement but as far as business insurance solutions go, public liability insurance could be the difference between keeping your doors open or shutting down for good. Depending on the nature of the claim, you could be hit with a massive lawsuit by a member of the public for injury or damage.
  • Don’t ignore the risks just because you are a small business. Spilling coffee over a client’s laptop or a loose floorboard which causes someone to trip and fall can end up costing you a fortune. The risks in a small business are just as real as in a big corporate company.

Get the right insurance for your business today. Hollard knows business insurance solutions.