Is it necessary to have liability insurance?
In your business, sometimes things can go wrong, and this can happen anytime and anywhere. The worse thing is this is a great threat to your livelihood. But you can protect your business by getting liability insurance to make sure that you are always covered whenever disasters will come.
What is the difference between public liability insurance and employer’s liability insurance?
It is necessary that you must understand the difference between these two types of insurance so you will know what suits you the best.
Both public liability insurance and employers’ liability insurance are essential to any type of business. It can cover legal fees and compensation costs if someone will file a claim for injury or damage. The main difference between the two is that employers’ liability insurance can cover claims filed by an employee while public liability insurance can cover claims filed by a third party such as a client, supplier, passerby or any member of the public.
Public liability insurance can protect your company in the event that you have caused injuries to someone or damage to properties while your employees are doing their work. On the other hand, employers’ liability insurance can protect your employees in case of unexpected injuries or illness while they are working in your company.
Public liability insurance is not actually mandatory, however, sometimes it is a requirement on the terms of your contract. Take note that it is a relevant coverage if your business regularly gets in contact with the public, for instance, restaurants, salons, and others. In the event that someone will blame your company for an injury, or damage and sue you, then you will have to pay a huge amount for the legal fees and the settlement. But if you have public liability insurance then you don’t have to worry if these circumstances can happen.
You need to understand that public liability insurance can’t cover claims filed by your employees or former employees who suffered injuries or illness while working in your company. You need employers’ liability insurance for this particular situation. In most cases, this is a legal requirement for businesses. Temporary and part-time workers, as well as specific types of subcontractors, can also be covered by this policy. Business owners have the option to purchase public liability and employers’ liability insurance in a single business insurance policy.
Why are these types of insurance needed?
Public and employers’ liability insurance are considered vital in protecting your business and guaranteeing that you don’t have to pay a huge amount of money for damages and injuries. However, it is not just about money. By showing your workers and customers that you are thinking about their safety and convenience, then the more they will trust you.
Employer’s liability insurance is legally required by law even if you only have a single employee. If you don’t have this type of insurance and one of your employees obtained injuries while at work and decided to file a claim, then the costs can quickly add up since you also have to pay for the legal fees. Having a comprehensive liability insurance policy can ensure that you and your employees are covered all the time.
What can be covered by public liability insurance?
Public liability insurance can cover the compensation and legal expenses on claims made by someone who gets injured or for damages to their property. It can cover your business even if your staff is working off-site.
This can cover damage to properties and injuries to customers, suppliers, passerby or any member of the public no matter if the incident occurred on your own premises, your client’s premises or elsewhere. The incident must happen while your employees are doing their work.
In the event that the third party will file a claim, then this can cover the legal fees for the proceedings.
This includes hospital costs including medications, ambulance costs and other expenses necessary for the treatment of the patient.
This involves the amount of repairing any damage to property. For instance, if you are a plumber and your work caused a flood on the premises.
What can be covered by employers’ liability insurance?
Employers’ liability insurance policy details can vary from one insurer to another. Generally, it can cover for compensation costs in the event that the employee gets injured or ill while working in your company. At the same time, it can also cover legal costs, medical costs, loss of income, and any other expenses related to the incident.
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About business banking
A business bank account is essential for any business – whether you are a contractor or a large firm with thousands of employees. There are many business account options with different account features based on your specific needs, including overdraft options, online banking, free business banking and interest on in-credit balances.