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Owning a business can open you up to liability claims from clients, members of the public, and different organisations. Making sure that your business has the best possible protection against liabilities is important. Pay-outs for liability claims can potentially bankrupt a business if the business does not have Liability Insurance Cover.

Protect Yourself and Your Business with Liability Insurance

The kind of company you own, its size, and its operations determine the type and extent of liability cover you will need. Don’t think if you are a small or new company that you’re not at risk for liability claims. The opposite is true. No matter how small or new your business is, a customer or third party can sue you and jeopardise the future of your company.

Don’t wait for a liability claim to hit before getting liability insurance. You can get a quote for Liability Insurance today and make sure you and your business are protected from liability risks.

Protect Yourself from the Risk of Jeopardising Your Liability Cover 

Already have liability Insurance? Great! The next step to protecting your business from liabilities is to make sure you don’t jeopardise the cover you have. Certain acts could affect the validity of your claims or could even result in the policy being cancelled!

If your policy is cancelled, losing the liability cover you have with one insurance provider may make it harder for you to find another Business Insurance Provider willing to cover your liabilities. This leaves your business without cover and monetarily liable for any legitimate cases made against your business.

Ways a Business Can Jeopardise Their Liability Cover

  • A business or business owner can lose liability cover by deliberately harming customers, employees, or other third parties
  • by giving invalid guarantees (not doing what you promise to)
  • by utilizing business assets for individual costs or gain, and
  • by non-compliance with corporate guidelines.

These factors are most relevant when they are material to your claim. They can all be considered forms of dishonesty that will impact your claims. You can protect your business and ensure you don’t jeopardise your Liability Insurance cover by providing the services you promise to. Your company should also follow corporate guidelines and encourage a safe corporate culture and environment.

If you require funds from your business for individual use, you as the business owner can issue a payroll check to yourself so that the cost shows up as a valid expense when audited. Lastly, make sure you are always honest with your insurance provider and conduct your business in an honest, safe, and conscientious way.

Are you Protected for Third-Party Claims Due to Personal Injury?

Basic third-party liability insurance should offer you protection in the case that liability claims are brought against your business due to personal injuries. Any third party, whether visitor, employee, or even a supplier, can bring a claim against your company if they are injured on your property.

Claims for personal injury can also come from situations where an injury is caused by an employee while they are doing the work of the company. When searching for the right liability cover, make sure the scope of personal injuries is included in your policy before you sign. The cover should include accidents on or outside your property and accidents caused by your company or its employees’ actions.

Are you Listed as the Correct Type of Business Entity?

Should your organization be recorded as limited liability, a private company, or sole proprietorship but you operate as, for example, a partnership, you can risk your liability insurance cover. There are various types and levels of liability protection accessible for every business type.

A company that provides only one kind of product or service may need less cover than a business that offers a range of products and services. Some services are also at a higher risk for liabilities due to unavoidable risks related to the service. An attorney can help you ensure your company is properly classified and registered, and your South African Insurance Provider can discuss the scope of liability coverage your company will need.

Are you Covered for Liability Claims due to the Damage of Personal Property? 

Private property can be damaged during the conveyance of merchandise to purchasers, suppliers, and other third parties. Property can also be damaged while your services are offered to clientele. Should one of your drivers be in an accident, you may be liable for claims due to the damages incurred. Sometimes an employee can accidentally damage your customer or another third party’s property while at work. If an employee behaves carelessly, the company can be held liable.

You can lower the risk of liability claims due to vehicle accidents or other careless mistakes by employees with training. Teach your employees to focus while on task and offer incentives and rewards for the successful execution of tasks in a safe and attentive manner. Training can also include what to do should an accident occur.

You can protect your assets, your employees, and your business from liability claims due to damage to private property, whether due to a car accident or other mishap, with Liability Insurance. You can get comprehensive liability insurance or insure each area at risk separately. Liability cover is available for vehicles in particular, as is liability coverage for public liabilities.

Do You Make Use of the Services of a Corporate Lawyer?

Attorneys can help you from before your company even exists. They will help you complete the necessary legal paperwork from inception to success. With the help of a corporate attorney, you can navigate the intricacies of corporate law so that your company can succeed in spite of any legal challenges that may arise.

If any third party wishes to bring a lawsuit against your company for a liability claim, your Liability Insurance can provide finances for the legal costs. Still, the services of an effective and competent attorney to resolve the matter may save you time and effort. They can help you settle the matter and minimise the knock-on effects of being sued for your company.

As you can see, finding the correct insurance provider for your Business Liability Insurance is of utmost importance. Policies and offerings differ, so to ensure you get what your business needs most, get a quote from different providers and see what they offer.

DISCLAIMER: The information provided in this article is meant for informational purposes only and should not be construed as legal, medical, or financial advice. Facts stated in this article are correct at the time it has been published.

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