Liability insurance and protecting your business from third party litigation

In an increasingly litigious society any serious business will consider the question of taking out liability insurance for financial protection in the event of its actions causing injury or property damage to be suffered by a third party. Indeed for many this cover is a mandatory requirement.

However, for smaller businesses saddled with so many other operational concerns, this form of liability insurance can often rank as a low priority. Such underestimation can have catastrophic consequences; however low a business's public liability risk, if it has effective indemnity from legal fees and damages payouts its owner can rest assured that it will never be shut down by the crippling costs of injury litigation.

This is a fact understood by the most prudent of small business owners. Even the quietest home office is not without some level of human traffic, whether clients, couriers or computer repairmen. It may only take a single person to slip or trip and break a leg for a policy to repay the price of its premium many times over.

Regardless of the size of the enterprise, public liability cover will ensure that a business is protected from having to pay compensation in the event that a customer, sub-contractor, visitor, trespasser or hawker suffers personal injury while on its premises. Although it will not prevent a negligence claim arising, a good policy should ensure that the business never incurs financial loss as a result.

Where there is a high public liability risk, the need for cover is obvious. Consequently, for any business such as a shopping centre, cinema or sporting club where there is a high traffic of third parties, considerations of quality and cost-effective cover will replace questions of need. Similarly, for any business that is licensed for the consumption of alcohol, comprehensive and competitively priced cover is essential.

Perhaps not all businesses will need public liability cover, but it is invariably an investment every business will have to consider. Yet these considerations will never be static; all businesses evolve and, as they do, so too will their insurance needs. This makes it essential that liability requirements are reviewed on an annual basis to ensure that coverage remains appropriate

Warrings - leading liability insurance professionals

At Warrings we provide tailored liability insurance solutions to a complete range of clients.

We draw from our broad network of insurance partners to deliver comprehensive and competitive cover that works for the individual business.

If you would like information about the cover that is right for your company's needs, speak to a professional on 0844 209 0566. Alternatively, complete an online form and we'll call you back.