Starting a new business can be pretty overwhelming, especially when you’re trying to figure out what types of liability insurance you need to protect your business. Here’s a straightforward guide to three essential types of liability insurance offered by The Co-operative Insurance and how they can benefit your business.
1. Public Liability Insurance
This insurance type serves two main purposes. First, it protects your business from claims if anyone, such as clients, customers, or suppliers, gets injured on your premises. For example, if a client trips over a misplaced box and injures their ankle, this insurance has you covered.
Second, it protects you during business-related trips. Say you’re at a customer’s place to fix their computer, and you accidentally delete crucial data that can’t be recovered—they might sue you for the loss. Public liability insurance covers the costs of damages and provides legal support if you need to fight an unfair claim.
2. Employers’ Liability Insurance
Public liability insurance doesn’t extend to your employees. To cover potential claims from staff who might get injured or fall ill due to conditions at your workplace, you’ll need employers’ liability insurance. For instance, if an employee gets an electric shock from faulty wiring or is exposed to toxic fumes while using machinery, this insurance is essential.
3. Product Liability Insurance
Not every business needs product liability insurance, but it’s crucial if you sell or distribute products. Consulting with Co-operative Insurance can help you determine if this coverage is necessary for your business. Even if you’re not the product manufacturer, you might be held responsible for damages if your name is on the product. For example, if you rebrand an imported product that causes injury due to a defect, you could be held liable. Investing in product liability insurance, which includes legal coverage, can be a wise decision to protect against such risks.