Sole traders are individuals who run their own business without the help of any partners or other organisational entities. Yes, they may hire additional employees to help them out with the venture, but they are the only ones to carry all of that on their shoulders when it comes to sales and liabilities. That being said, this may seem like the only reason for them to have public liability insurance.
However, did you know that such an insurance can also provide other benefits towards sole traders? Below are just a few examples.
1. Covering Legal Expenses Due to an Opposing Party
If you oppose another party and they take you to court, it is only normal for you to hire a lawyer to represent you in the said hearing. Your public liability insurance can help you cover this cost. Take note that it will be up to you to talk with a broker about getting a policy that will cover all your potential legal fees.
2. Covering Legal Fees in Case of an Accident
Suppose your employees are not careful and an accident happens on your business property. In that case, you may find yourself needing to pay for the medical expenses of those affected. You may even be required to pay for the repair or replacement of some utilities in some cases.
If you do not have public liability insurance, this would not only stress your budget, but it may also affect your company’s reputation. It is much better to avoid such a scenario from happening in the first place, and that is what insurance can do for you.
3. Getting a New Vehicle
If the accident involves your business vehicle, the insurance company may cover some of the repair costs. Again, it may be up to you to negotiate with your broker. Still, this is something worth considering if you want to save some money on fixing the vehicle.
4. Protection from Intentional Acts
This is something that is quite different from accidents because it involves intentionally harming someone. For example, someone decides to hurt one of your employees while they are on your business property. In that case, you can use public liability insurance to cover the medical expenses and repair costs.
5. Protecting Yourself against Erroneous Claims
There may be times when people will file a claim against you even if you are not at fault. They may either do this to take advantage of your good nature or because they do not have any other way to cover their own losses.
Regardless of their reasons, you may be held accountable and will be forced to pay their losses, meaning that your budget and your reputation will suffer the consequences. However, with public liability insurance in place, you may be able to fight such a claim legally.
6. Having More Options for Financing
This is more about the future. It is not uncommon for a business to grow over the years, which will mean that you need to make more purchases for your business, such as a new vehicle or a new office space.
Suppose you do not have public liability insurance already. In that case, you will be forced to save up for these purchases, and that method may take a while.
On the other hand, if you do have it, you can simply go to your insurance company for loans and purchase those added amenities through them.
Conclusion
Suppose you are a sole trader and are still debating whether or not you should get public liability insurance. In that case, there is no need to think further. Apply for one now!
If you have your own business, you should definitely get it to protect your business, budget, and reputation. Just make sure that you get a trustworthy broker to help you with this process.
If you are looking for an institution that provides public and products liability insurance, look no further than what we offer here at New Wave Insurance. We are here to help you find the right insurance for your assets, business, and vehicles. Call us today and let us discuss all your insurance options.