Choosing an insurance provider for our church

Why You Should Review Your Public Liability Insurance Regularly

by Anna Campos

Some owners of small businesses may buy the lowest level of public liability insurance and then neglect to review this insurance coverage for a long time, such as several years. However, there are situations that warrant reviewing the public liability insurance coverage of your small business. This article discusses some of those situations that should prompt you to review that liability insurance cover.

Changes in Client Sizes

The magnitude of the liability risk faced by your small business when you have clients whose businesses are not worth a million dollars may be different from the risk that you face if you have a client whose business is worth billions of dollars. This may be because the bigger client may have very expensive equipment that can drain your finances in case you accidentally damage that equipment as you deliver a service at the premises of the client. It is therefore advisable to review your public liability cover each time you take on bigger clients. This will cushion you from the costly lawsuits and damages that can result when you deal with large companies.

Changes in Employee Numbers

As you take on more employees, you need to review your public liability insurance coverage to make sure that it is in tandem with the higher risks that you face. This is because a bigger number of employees increases the risk that an employee may be found liable for damaging a client's property as he or she does company work. For instance, an employee may trip and damage an expensive server in the data center of a client. Another employee may accidentally drop sensitive computer equipment that he or she was carrying to the data center. Such events can result into a huge compensation claim that your insurance coverage may not be adequate for in case you hadn't reviewed the policy to make it match the higher risks that your business faces.

Changes in Business Premises

You may have moved to new commercial premises after operating your small business from your home for several years. Your business may have faced a lower risk of a member of the public being injured at your house. However, this risk may increase significantly once your business shifts to new business premises. This is because there will be more members of the public accessing your premises. This calls for a review of the public liability insurance coverage so that the added risk is reflected in the new policy that you acquire.

As you can see, you need to review your public liability insurance coverage regularly, perhaps yearly, in order to adjust the policy in accordance with the degree of risk that your small business faces at that time. For more information, contact companies like Westralian Insurance.