The Benefits Of Public Liability Insurance
In a bid to increase profit margins, business owners will cut any unnecessary expenses. Unfortunately, some business owners might consider public liability coverage as an unnecessary expense. However, this mistake could make you liquidate your business. Public liability insurance covers businesses that suffer third party injury suits. For example, a customer visiting your premises could suffer injuries after falling down a slippery staircase. Below are several advantages of public liability insurance.
It Covers The Lawsuit
The injured client will hire a personal injury lawyer to help them secure compensation from the business. Without public liability insurance, you will have to hire a lawyer to represent the business. Compensation lawsuits are expensive since the compensation process is quite lengthy. In some cases, the losing party pays the legal costs of the winning party. You do not have to worry about this if your business has public liability insurance. Most insurance companies have skilled lawyers to counter the victim's claims or negotiate a settlement outside of court between both parties.
It Compensates The Victim
Should you lose the compensation suit, the business will have to compensate the victim. Most people assume compensation claims only cater to medical claims. However, with a good lawyer, the victim could claim pain and suffering, property damage, rehabilitation, loss of current and future wages and pension. These extra costs can quickly accumulate. Even if you worked on a payment plan with the victim, your business would take a considerable hit, and you might have to close shop. Your public liability insurance coverage would compensate the victim if you were found negligent. This protects your business from insolvency. You will also have peace of mind and can concentrate on the core business functions, even with an ongoing lawsuit.
It Enhances Your Business Image
If word gets out that someone suffered an injury on your premises, the company stakeholders will want to know whether you have insurance coverage to cater to the victim's needs. If not, you may lose the trust of your stakeholders since they assume that the business does not care about the welfare of others. The assurance that the victim's needs will be attended to can help save face and enhance your business image during such an event.
Public liability insurance protects your business from liquidation and enhances your business image when a third party suffers an accident on your business premises. The cover pays lawyers and compensates the victim if you are to blame for the injuries.