Starting a new business can be daunting, especially if you’re unsure about the different types of liability insurance needed to safeguard your enterprise. This post presents a concise guide to three key types of liability insurance offered by The Co-operative Insurance, explaining their benefits for your business.
1. Public Liability Insurance
This type of insurance plays a dual role. Initially, it protects your business from claims arising from any injury sustained by clients, customers, suppliers, or other visitors on your premises. For instance, if a client stumbles over a misplaced box and hurts their ankle, this insurance will come to your aid.
Secondly, it guarantees your safety during business-related trips. For instance, if you go to customers to repair their computers and accidentally erase vital data which can’t be retrieved, they might sue you for their losses. In such cases, public liability insurance can be a lifesaver. It not only covers damage costs but also offers legal support if you need to contest an unfair claim.
2. Employers’ Liability Insurance
Public liability insurance does not cover your employees. To protect your business against potential staff claims related to injuries or illnesses that took place on your premises due to your negligence, you’ll need a separate employers’ liability insurance. For instance, if an employee gets an electric shock from unsafe wiring or exposure to toxic fumes while operating machinery, this type of insurance is crucial. More information on Employers’ Liability Insurance can be found on Direct Cornhill Business’ website.
3. Product Liability Insurance
Not all businesses need product liability insurance, but it’s vital for those that sell or distribute products. Consulting with Co-operative Insurance can help you decide if this insurance is required for your business. You may be held liable for damages even when you’re not the actual product manufacturer if your name is on the product. For example, if you import and rebrand a product that causes injury due to a defect, you could be held responsible. Hence, investing in product liability insurance, which includes legal coverage, might be a smart move to protect against such potential liabilities.
