It’s crucial to defend yourself and your business from potential lawsuits as a business owner. One kind of insurance that can offer this protection is public liability insurance. Many business owners do not have employees, therefore they question if they require public liability insurance. The short answer is that even if you don’t employ anyone, you still require public liability insurance.
Your company is protected by public liability insurance from third-party lawsuits asserting that your operations caused their illness, injury, or property damage. Your company may still be held responsible for mishaps or damage brought on by your goods, services, or operations even if you don’t have any workers. A client might file a lawsuit against you for damages, for instance, if they trip over a loose cable while visiting your office. If you are proven responsible, your public liability insurance may assist pay for your legal bills and any damages.
You must first notify your insurer of the claim before making a public liability insurance claim. You must provide specifics about the occurrence and any supporting documentation. Then, your insurer will look at the claim and, if necessary, ask for more details. If the claim is approved, your insurer will pay your policy’s maximum in compensation and legal fees.
Another kind of insurance that might shield your company is professional liability insurance, sometimes referred to as errors and omissions insurance. This kind of insurance covers lawsuits brought against your company for errors or professional negligence. Professional liability insurance, for instance, can assist in covering the costs of legal fees and compensation if a client sues you for giving wrong advice or making a mistake in your job.
Claims filed against your company for mistakes or omissions in your professional services are often covered by professional liability insurance. However, it excludes claims for bodily harm or property loss brought on by your commercial activity. To guarantee your company is completely secured, it is crucial to carry both public liability and professional liability insurance.
The distinction between indemnity insurance and liability insurance is frequently unclear. Although your company is protected by both types of insurance, there are some significant distinctions. Liability insurance protects your company from lawsuits asserted for bodily harm, disease, or property loss brought on by your commercial endeavors. Contrarily, indemnity insurance protects your company from lawsuits asserted for breach of contract or failure to provide agreed-upon goods or services.
In conclusion, even if you don’t have any workers, it’s crucial for business owners to obtain public liability insurance. This kind of insurance can give you peace of mind and shield your company from future legal action. To safeguard your company from accusations of professional carelessness or errors, it’s also critical to carry professional liability insurance. You can make sure that your company is completely secured against potential threats by acquiring both types of insurance.