Public liability insurance is important for SMEs because it protects them against the financial implications of claims that can be made against SMEs by the public. This is possible when an accident that leads to an injury or damage to property is caused by your business.
The type of insurance is essential due to the challenge of interacting with the public. Where businesses believe they have minimal interaction with the public, it’s necessary to understand that it’s nearly impossible to control each and every interaction.
Getting public liability insurance ensures you’re always prepared for unpredictable incidents that could land you in a lawsuit.
What Kind of Business Needs Public Liability Insurance?
Public liability insurance is a form of business insurance that every business needs. Whether you’re self-employed or you’re running a large business, you can avoid unnecessary liability. This insurance isn’t restricted to tradesmen who typically work in risky situations.
For instance, you might be running a small hair salon business and have the unfortunate occurrence of a customer getting burned by one of your products. Having public liability insurance will help you cover the medical costs of an injured customer’s treatment.
A different example would be one of your contractors causing damage to a client’s property while carrying out work on your behalf. Public liability insurance would then cover the cost of repairing the damage.
What is the Difference Between Public Liability and Events Liability?
Public liability and events liability share similarities, but are, in fact, quite different. Public liability focuses on protecting the business from third-party claims from risks associated with its daily business operations. Think about the daily aspects of your business and a worst-case scenario where a member of society interacts with your business and gets harmed.
Public liability covers factors like tripping, falling, and slipping. This can be from a loose tile, an object that might fall and injure someone, a wet floor, etc. The insurance also covers property damage and legal expenses.
Event liability is different because it doesn’t focus on daily operations; it focuses on events at a set location. This insurance covers risks for the duration of those events.
Where to Get Public Liability Insurance
SMEs in South Africa are spoilt for choice when it comes to choosing a public liability insurance provider. Here’s a list of providers to choose from:
1. Budget Insurance: Budget insurance offers cover starting from just R150 a month. They also cover legal support, and you can tailor your insurance to reach up to R100 million cover.
2. OUTsurance: Get standard OUTsurance cover for damage caused by your business if someone suffers from bodily injury, illness, death, or damage to property.
3. Bi-me: Business Insurance made easy (BI-me) is a platform that connects SMEs directly to leading insurers, giving them a streamlined experience of getting quotes from various insurers.
4. 1st for Women: With 1st for Women, your public liability insurance covers third-party injury or property damage for the following: safe premises, employee safety, product safety, and maintaining quality.
5. Auto&General: Auto&General offers public liability insurance from R150 per month. When you have a business insurance policy with Auto&General, you also gain access to a suite of support services created just for SMEs.
Why Every Business Should Get Public Liability Insurance
In business, there is always risk. Every time you open your doors, interact with a customer, deliver a service, or even answer a call, there is a chance that something can go wrong. Public liability insurance is not just a nice-to-have. It is a safety net that protects your business from accidents that could drain your resources or even close your doors for good.
One of the biggest mistakes many entrepreneurs make is believing their business is too small to need insurance. The reality is that accidents do not discriminate. A small café can face the same kind of claims as a large retail store. A single slip on a wet floor or a product that causes an unexpected allergic reaction can result in medical costs, legal fees, and settlement payouts that many SMEs cannot afford on their own. Insurance exists to absorb those shocks so you can focus on growing your business.
