Insurance can be a confusing thing, and it’s something that many people struggle to comprehend when they go into business or start up on their own. But, it’s something that you really can’t afford to get wrong. You wouldn’t drive without insurance, nor should you be without it professionally. You may need to add equipment to your home insurance policy if you work at home or keep things there. You’ll also need commercial insurance and car insurance for any work vehicles. But, one of the more confusing elements can be liability insurance and whether you need it or not.
What is Liability Insurance
The first step to knowing whether you need it or not is understanding exactly what it is. Insurance generally is something that covers you financially if a claim is made against you. Or, pays out if you make a claim yourself. So, in the case of car insurance, if you are involved in a no-fault accident in which your car is damaged, the premiums that you have paid mean that your insurance company will pay out to cover the costs of the repair. If you were at fault, and you damage another car, it’s owner can make a claim to your insurance company to cover their repairs.
In the case of liability insurance from liabilityinsurance.co, you are covered if your business somehow injures a member of the public or causes damage to their property. This can include things like them falling on an uneven tile in your office, or you accidentally damaging something while you are visiting their premises or home. Your liability insurance covers compensation, damages, legal expenses and other costs such as loss of income, that may be incurred.
Do You Have Contact with the Public?
The easiest way to figure out whether you need liability insurance is by working how if you have contact with customers or clients at all? If you own a catering company or café, you’ll need it. Customers visit your premises every day and are at risk no matter how careful you are. Even if you are a sole trader, working alone and providing an online service, you can have occasional contact with clients or service providers.
Do You Work from Home?
Often, when people work from home they simply change their home insurance policy to reflect their homes new use. This is well within the law, but, you should still consider liability insurance even if clients and customers never visit you at home. If you ever go to networking events or trade shows, you meet people. They could trip over your equipment, or you could spill a drink on theirs. You never know.
Is it a Legal Requirement?
Unlike car insurance, liability insurance is not a legal requirement. In some professions, it’s company policy. Doctors, for example, would not be allowed to practice without it. But, more often than not, the choice is yours as it is with contents insurance at home. But, when you think about the risks, and what could go wrong on any typical day, and you’ll see that it’s more than worth it.