Businesses need to take out public liability cover or run the risks of incurring substantial costs, warned the head of one industry body recently.
John Hurrell, the chief executive of the Association of Insurance and Risk Managers in Industry and Commerce, remarked that unless they took out public liability insurance cover, businesses are opening themselves up to quite substantial risks. The chief executive went on to say how rare it would be to find companies with no interaction with the general public or third parties in any way, either through staff, services, or products.
There is a need for businesses to carefully consider how much potential costs they could possibly incur in the event that any one of these third parties brought a successful major claim for monetary damages in the wake of an injury, an accident, or any other experience with a negative outcome, said Mr Hurrell. The chief executive gave several examples of different considerations for any given firm, such as whether their products could potentially cause damage or injury to others, whether their staff ever venture on to third party premises during the course of their work, whether the business has any kinds of contractual liabilities, and whether a fire that was caused through negligence on their part spread to an adjacent premises, bringing with it injury and property damage.
The chief executive of the insurance association also recommended that business owners carefully check their public liability insurance policy documents for any exclusions that could possibly apply, such as cover limitations due to geographical limits or any other factors that could result in a possible stumbling block in the event of a claim.