Sometimes, working on a business can make you anxious because it’s so hard to predict what’s going to happen in the future. You must have come into that phase when you want to protect your business at all cost. Maybe issuing a public liability insurance has crossed your mind too.
A public liability insurance will protect you if a customer, supplier, or anyone in public sue your company for certain issue.
Let’s say, you’re having a contract which makes you have to use their property. They warned you not to damage it. However, no matter how vigilant you are, sometimes, luck does not want to be friend with you. You damage their property and now they ask for a claim.
If you do not have public liability, you might face the great sum of money to pay for the legal and compensation which will potentially damage your business.
Considering the importance of public liability insurance, you have to make sure that you choose the right insurance company. Not every insurance policy gives the same offers. So, here are the tips on choosing the public liability insurance for your company:
Analyze Your Business Risk
Insurance company will determine how high the risk that they’re going to bear after learning your application. They will see whether they can give you full or partial coverage. Therefore, make sure you completely comprehend your business risk.
Make Sure That the Policy Covers All Your Business Activity
After acknowledging your business risk, you need to ensure that your insurance company provide a policy that supports all of your business activity. Read the policy carefully. Pay attention to things that are covered and not.
You may ask questions like this:
Does this policy protect all of the activities related to my business? Does this policy only cover the public liability or also include the product liability? What is included and not included in the public liability policy? And lastly, who is covered by the policy?
Check the Requirements of Your Industry Association, Professional Membership, and Contract Agreement
Be Careful with the laws where your company in regarding the public liability insurance. You have to be attentive to the minimum coverage cost based on your industry association and professional membership.
Some contract agreements also oblige their working partners to have the public liability insurance. So, prepare all the requirements that you need to fulfill before having your policy issued.
Ask for More Than One Quotations
It’s very normal if a company wants to suppress their expense. However, if you choose the cheapest public liability insurance might not be the right option. Think carefully the risk and the soon-to-be-issued policy.
The effective way to get the right policy with the affordable cost is by requesting many quotations. After that you can compare the price and the offer provided.
Minimize Your Business Risk
After you choose the suitable policy for your company, the risk will still be there. However, a regular evaluation of your business will reduce your business risk. This is a good strategy to decrease your insurance cost from time to time.
Do everything you are capable of to protect your business to ensure that all your business activity run according to the plan with minimize mistake. For example, by training your employee right.
You can also apply an ERP system to help your company to run its daily operation effectively and accurately. Every function in your business can be identified easily with a real-time cloud-based system. With that way, you can think of solutions immediately when an obstacle come in your way.
Public liability insurance is something that you must have considering every activity in your business containing risk. There are several things to be considered before having a insurance policy for your business issued. Choose wisely!
Related Article: Chapter V: How to Choose the Right ERP Vendor