Whenever a compensation claim is made against your business, you can be impacted in two crucial ways. First, there is the financial damage that may arise from claims as well as related legal expenses. Second, there is the potential risk that may be waged against your reputation. Although financial damages can certainly be expensive, the loss of your reputation in your industry can also be quite expensive and may even be impossible to calculate, given the possibility of future lost clients and profits.
The growth of the compensation culture throughout the last few years has now resulted in a significant threat to anyone who operates a business. Regardless of the type of business you operate or conduct, if you have any contact with the public at all you need to make certain you have adequate protection. Investing in public liability insurance and/or professional indemnity insurance can provide you with peace of mind and the protection your business needs from potential financial risks.
An increasing number of businesses have now recognized the tremendous benefits of business insurance and are now electing to purchase insurance as a way of protecting their businesses interests. If you have not yet thought about how your business would afford the expenses that might be incurred in the event a client or member of the public should launch a compensation claim against your business, it is certainly time to do so.
For many businesses, even the necessity of defending themselves against a compensation claim could be more of an expense than they are equipped to bear financially and could spell financial disaster. Consider for a moment whether your business would be prepared to respond in such a situation. What if your business were found to be liable for damages? Would your business be able to survive?
Liability insurance and indemnity insurance are two different types of business insurance policies that are designed to protect your business in the event damages should arise from different circumstances. Public liability insurance provides protection if a member of the public sustains any damage to their body or property while on your premises. Professional indemnity insurance provides protection if a client or customer brings a lawsuit against your business for making a mistake, negligence or error that has resulted in some type of damage. Both forms of insurance can be beneficial in different circumstances. Remember that mistakes and accidents can happen at any time. Make certain your business is protected.