Why Self-Employed People Often Risk Too Much
When you drive your car along any public road, you know there are risks involved. To help cover these, you have an insurance policy in place, and when you buy a car, you don't think twice about getting this form of cover. Yet there are other areas in your life where you could be exposed, especially if you run a small business. While some self-employed people may be required to take up some type of insurance as their skill or profession is regulated by the government, many others are not. Why should you be looking at this coverage seriously?
Prepare for the Unknown
No matter what kind of business you have, you will be offering some sort of product or service to other people. Whether those people will come to your place of business or you will go to theirs, there is an element of risk. What would happen if somebody fell over a loose obstruction when they entered your office or workshop? If they sustained a considerable injury, then they could look for compensation. If you didn't have any public liability insurance in place, they would come directly after you.
The Scale of Risk
Injuries can take many different forms. In the case of a serious incident that resulted in long-term repercussions, the individual in question could claim that they suffered from PTSD or other psychological trauma. If they sustained a physical injury that kept them out of work for a long time, their losses could be substantial.
In a different scenario, an action taken by you or one of your employees could damage the property of a third party. In this case, that individual would need compensation for repairs.
It's Your Choice
Some trade organisations require their members to have public liability insurance in place, but many do not. If you're not within a regulated industry, then you must take the initiative yourself to consider your public liability insurance options.
In a worst-case situation, somebody could take their case to court and win a sizeable payout. If you didn't have insurance coverage, this could wipe out your savings or send you into bankruptcy.
This is a chance that many self-employed people ignore or believe will never affect them. It's never worth taking that risk. You will sleep much better at night and help safeguard your family's future if you talk with an insurance broker as soon as possible.
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