Association of Insurance and Risk Managers in Injury and Commerce chief executive, John Hurrell, recently remarked that businesses run highly significant potential risks if they decide to do without public liability cover. The Association chief executive said that public liability policies provide for the costs incurred in defence of such a legal claim, in the event that a company causes losses for members of the public.
It was nearly impossible that a firm would not have staff, services, or products that had at least a bit of interaction with a third party, said Mr Hurrell. This makes having public liability cover key to the business operations of any given firm.
The chief executive added that businesses need to take the time to determine how much it would cost to defend a major claim. Some examples of considerations that need to be made would be determining if a firm’s products have the potential to causing damage, he said.
There are a myriad of instances that could lead to public liability, said Mr Hurrell, such as a fire spreading to adjoining businesses or homes, or staff going on the premises of third parties. The Association chief executive urged companies to make sure they have full awareness of any and all exclusion clauses that may be present in any existing policies as well.
Make doubly sure that you know if the cover you have has any geographical limits, or that your firm is described correctly and accurately in the policy, Mr Hurrell also said.