Insurance Risks for Small Business Owners
By James Pickering, Managing Director of online insurer Insurantz.com
Recession and increasing litigation often go hand in hand. There are few industries which are exempt and the outcome of any successful action can be an expensive compensation package. Small business owners can play a major role, argues James Pickering, Managing Director of online insurer Insurantz.com, in minimising the risk from litigation by maintaining robust business processes in controlling risk.
Saving money on your overheads during a recession is essential. You could be tempted to not bother renewing your policy. The question is - could your business afford the cost of a...
...successful claim against you?
Public liability insurance will cover you if someone is accidentally injured by you or your business operation. It will also cover you if you damage third party property while on business. The cover should include any legal fees and expenses which result from any claim by a third party.
One of the major issues facing small business owners, who often have smaller premises where space is tight, is lack of storage. If products are temporarily, or accidentally, left hanging around and cause an accident, it is the small business owner who could be held responsible should the injured party make a successful claim.
A common level of public liability cover is around £2 million; however premiums can vary dramatically at this level of cover, so take the time to get the best possible price.
It is a legal requirement for every employer in the UK to protect their employees against risks in the workplace - the minimum legal cover requirement being £5 million.
With legal firms reporting rising compensation claims from staff during the recession, and average claims for accidents at work standing at £16,000, now is the time that managers should be focusing... continued on page two >