Starting a new business can feel overwhelming, especially when you’re trying to figure out the different types of liability insurance you need to protect your company. This guide explains the three main types of liability insurance offered by The Co-operative Insurance and how they can benefit your business.
1. Public Liability Insurance
Public liability insurance serves two main purposes. First, it safeguards your business from claims if someone gets injured on your premises, like a client tripping over a misplaced box and getting hurt. Second, it protects you during business-related trips. For instance, if you visit a client to repair their computer and accidentally delete important data, they might sue you for their losses. Public liability insurance can help by covering the damage costs and providing legal support if you need to defend yourself against an unfair claim.
2. Employers’ Liability Insurance
Public liability insurance doesn’t cover your employees, so you’ll need employers’ liability insurance to protect your business from staff claims related to workplace injuries or illnesses caused by your negligence. For example, if an employee gets an electric shock from faulty wiring or is exposed to harmful fumes while working, this insurance is essential. It ensures that your business is protected if an employee files a claim against you.
3. Product Liability Insurance
Not every business needs product liability insurance, but it’s crucial for those that sell or distribute products. It’s wise to consult with Co-operative Insurance to determine if you need this coverage. Even if you’re not the manufacturer, you could be held responsible for damages if your name is on the product. For example, if you import and rebrand a product that injures someone due to a defect, you could be liable. Thus, having product liability insurance, which includes legal coverage, can be a smart way to protect your business from potential risks.