Keeping Young Businesses Strong And Avoiding Liability Claims

Many businesses interact with the public on some level. This is especially true of industries like retail, where shop owners readily invite the public onto their premises and mingle with them in an effort to make a sale.

The hospitality industry is another example, with hotels and restaurants relying heavily on interaction with the public for their business. It is almost an inevitability that any business will interact with the public on some level.

Many businesses also go out to people's homes, for example tradesman or merchants will routinely go to other people's property to carry out repairs or renovations. There is a big issue that arises from interacting with the public and their property.

The business in question has to take responsibility for the safety of them or their property - and is liable for damages, should they occur.

What Is Public Liability? Public liability is essentially the responsibility that a business has to the safety and security of a person's well-being or property. This is known as the duty of care. Any form of negligence will often result in a successful claim against a business and if injury occurs this counts as a breach of the duty of care which often leads to successful claims. It is a very complex process, but the duty of care essentially covers three basic groups;

Invitees - this is essentially those you invite onto your premises in the hope of doing business with them. Customers or contractors are included within this. It also covers any products you make, if someone is injured by one of your products due to a defect then you may be liable for damages.

Licensees - this group consists of people who are interacting with your business but offering no economic reward. For example, a salesperson visiting a fashion shop in the hope of selling some scarves would be a licensee. The duty of care is not as extensive for licensees.

Intruders - yes that's right! Trespassers are covered by the duty of care, for example if someone unknowingly entered a closed area of your business such as a room that is being renovated and is injured you could be liable for damages. Any kind of deliberately created danger for willful intruders is also potentially a cause for claim; for example any kind of like booby trap.

These three groups are where large majority of claims come from.

What Sort Of Claims Are The Most Common? Liability is almost entirely centered on claims for accident or injury. Some common claims include:

Falling & Tripping - if someone falls or trips over due to a business's negligence they may make a claim. This forms the majority of claims overall. A classic example of this is slipping on a wet floor that has not been properly signalled by a 'Caution: Wet Floor' sign.

Stress - if a person is unduly stressed or made anxious they may make a claim. For example extensive delays or equipment malfunction, such as lifts, may result in claimants taking action.

Injury From Objects - this is another common type of claim, injury from a falling object on a construction site is an example of this type of claim.

There are other types of claim too, such as abuse. For example, if a nursery is being run and a child is hit or disciplined by staff by physical means then a claim could be made. Abuse may also be verbal, for example staff using any kind of racial, homophobic or otherwise threatening language may result in a claim being made.

Is My Business At Risk? Quite major compensation claims are relatively common when it comes to injuries or accidents. We've all seen those compensation lawyer ads on television, and that's an indicator that people are willing to pursue claims. Therefore this is a risk for a business.These claims could be tremendously expensive, particularly if there are legal expenses involved. So businesses are at risk for claims of liability from the public.

How Do I Protect Myself? Public liability insurance is used to protect businesses against claims and provides cover up to a certain amount.

You need public liability insurance if-

You have visitors to your place of work
You visit other people's property during the course of your work
A new client demands it as a condition for working with you
The nature of your work is risky or might cause injury

So essentially, public liability insurance is necessary to protect a business from any claims. When searching for public liability insurance quotes one should take into consideration the following:

Extent of cover - how much does the policy cover for any damages or costs payable to a claimant? If your business is large, then you will need a large amount of cover as the probability of a claim is increased if you interact with the public on a larger scale.

Court compensation - in the event that a claim is made and you are required in court, will your policy compensate you for the lost time each day that you're there?

Staff cover - does the policy cover permanent employees only or are temporary staff also covered for liability?
In these uncertain economic times, it's important for young businesses in particular to protect themselves from any financial claim that may arise. This is necessary for the sustainability and growth of a business.

It doesn't matter what you do, whether you're a retailer selling clothes or a hairdresser visiting houses - if your business interacts with other people or their property then you will need to protect yourself against any claims.

Thanks for reading. I'd love to know what you think so please feel free to comment. If you liked this piece then please check out the rest of my work on EzineArticles, especially "Starting A Business And Your First Considerations For The Workplace".

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