Saturday, 18 May 2013

The constant risk of liability

The constant risk of liability

No matter what kind of business you run, there is always the potential for liability. It comes in many forms, but there is no business that is truly exempt. As such, it is something you need to watch out for.

With this in mind, here's a quick rundown on liability. Whether its understanding who can claim liability, and why, or protecting yourself with the correct liability insurance for small business, the more you know will make you more prepared in the long run. Your business, as a result, will be better off for it, both legally and financially.

Who can claim liability?

First and foremost, most people can claim liability. As the owner of your business, you are responsible, as the business, for what happens. As such, members of the public can claim liability for anything that happens that they deem your fault. This isn't just limited to anything that happens within your premises, either. If something happens when your staff visit the customer's home, liability can be claimed. In short, when acting on behalf of your company, you, your staff and anything else related can come under liability if it’s your fault.

Likewise, your own employees can claim for liability. Personal injuries are perhaps the most common example of this. Again, this is because you own the business; similar to customers and other members of the public, you have a set of legal duties and requirements you must meet for your employees. Fail to meet these, and liability could be claimed.

Even if you aren't guilty, that won't stop people claiming for liability. Legal disputes such as this can often be expensive, or damage your reputation, so it always helps to avoid them where possible.

Investing in insurance

Of course, if a claim does happen, you also want to protect yourself from a financial perspective. As stated earlier, both members of the public and your own employees can claim liability. This gives you two different forms of insurance; public liability insurance and employee liability insurance.

In most cases, insurance for employee liability is a legal requirement, but that doesn't mean public liability insurance isn't a wise investment. A small price to pay up front is arguably worth not having to risk the expensive costs and fees should a liability claim occur and get out of hand. Click here for Axa liability insurance for small business. 

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