Do I need public liability insurance if I am self-employed?

Do I need public liability insurance if I am self-employed?

The system of risk financing includes also liability insurance, which protects the purchaser from the risks of responsibilities coming from claims and lawsuits. It is to be mentioned that the claims this kind of insurance deals with regard third parties.

The first obligation managed by this document is that of defending the insured whenever this one is sued by third parties. The second main obligation is to compensate the amounts for which the policyholder is considered liable by third parties. The limits of the sums to be paid are highlighted by the policy.

We have to keep in mind that for companies or individual entities under the risk of causing harm or injuries to third parties, the policy in discussion is compulsory in many countries. Three main classes can be considered: public, product and employers policies.

If your business activities or processes can have a negative impact upon third parties (i.e. public, clients, customers, sub-contractors, trespassers) or harm their possessions, then you are advised to acquire public liability insurance. Why? Because this kind of policy will finance the expenses in case somebody is injured unwillingly by you or your business activity. Nonetheless, don’t forget that if one of your employees is harmed while exercising their job responsibilities, this agreement cannot help you. In such a situation you need employers insurance, which will compensate the injured party.

As for the second class, product liability, is not obligatory. Some legislation impose on those dealing with goods (either manufacturing or supplying them) to have the protection of such a policy. There are also general policies, covering the risks of public and product liability together, incurred by direct or indirect actions of the policyholder.

Markets, shopping centers, sporting venues, hotels, theaters, clubs, pubs, resorts bear the highest legal responsibility for public exposure. That is why, for such places regularly called on by large numbers of visitors it is of great importance to be hedged by the policy insurance, which will eventually provide the money demanded in case of damage or loss caused to people frequenting them.

Do take such a policy into account!

Take Care Of Your Business In Case Of Disasters

Your business doesn’t have to be placed in a location usually affected by natural calamities to require insurance against disasters, for the obvious reason that not all disasters are natural. Even with no lake, river or sea in sight, some pipe could break and result in a grand scale flood, affecting not only the furniture and equipment but leading also to injuries of your staff, in the dangerous mix with electric power. And a serious explosion due to a banal gas leak may shatter both things and lives.

Therefore, serious accidents may result in damages and injuries as bad as those caused by natural calamities, and they may always occur because there is always room for negligence, shortcomings or inaction.

Because such bad accidents would not stop to these, but also harm the people around, be those staff or clients. For the human factor, you need first of all employer’s liability insurance and public liability insurance. If something bad happens to the people found within your precincts at the time, you’ll not be legally liable, and the insurer is to pay both compensations and legal costs, on behalf of your company.

There are some businesses for which indemnity insurance is absolutely essential, such as salons, surgeries or restaurants. This covers also serious accidents affecting third parties and provoked by your own personnel, such as the ones due to malpractice or food poisoning.

If your staff injures or damages a third party through their own fault (misjudgment, wrong action, inaction), the insurance company will cover the compensations on behalf of your business and also the legal costs, if they are found guilty in a court of law or if not, but they still have to pay for legal advice. Indemnity insurance makes sure you can lead a quiet life and carry out successfully your activity.