There are not many business owners who don’t take measures to protect their business from possible third party claims. For this reason, most business owners carry some level of public liability insurance. Without this coverage, businesses could be quite vulnerable to possible claims which could have detrimental effects on the business.
If a third party becomes injured or has their property damaged due to suspected negligence on the part of a business, they are entitled to file a claim seeking retribution for the incident. Sometimes these claims can be settled out of court. However, many times legal assistance is needed. Legal fees can be quite costly. Fortunately, if a business has public liability insurance, these expenses can be covered up to the policy limit. In some situations, claims must be taken to court. These expenses are also paid by public liability insurance.
As a result of out of court negotiations or court-ordered action, a business may be required to pay monetary damages to the claimant. These awards, especially if ordered by a court, can be quite costly. Having public liability insurance is also beneficial in these situations, as the terms of the coverage will also pay for the award.
Most clients and customers today will not hire a business to do work for them if they do not have adequate public liability insurance coverage. This can often be the determining factor when they select between two companies. The reason for this is that they want to be protected if the business does something in error. For instance, a homeowner may hire a roofing company to replace their roof. The company may not provide appropriate protection against the weather, resulting in water damage. The homeowner would then make a claim against the company. Without public liability insurance in place, some homeowners may be skeptical about getting their money back.
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Business owners looking to establish a solid customer base should make public liability insurance a must have.
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