When you start up in a new business, it can be devilishly difficult to know exactly what is needed in terms of protecting your assets and looking after your staff and interests. Public liability insurance for example will definitely be recommended for anyone who supplies services and goods to a third party. Although not strictly legally required, it is a seriously good ideas. To give a couple of examples: You are in a customers home and you accidentally damage a piece of their furniture, . . a PL policy cover the cost of repairing or replacing the furniture and will see to any other associated legal expenses that arise following the incident. Of course, apart from ensuring the customer has their furniture sorted, a very quick resolution to the problems will stand you in good stead with the customer and they will probably still recommend you to others. Another scenario could be a customer visiting your store/premises trips over some equipment or a trailing cable and injure themselves. A PL policy covers the compensation to the customer and the legal costs that can mount up if it gets complicated. Another consideration is that many large multi national corporations will not entertain dealing with any supply company who does not hold satisfactory public liability insurance. It is very common to be asked for evidence of all policies held when at the quotation stage.
Another essential policy will be employer’s Liability which covers legal fees and compensation claims from employees who may have become ill or injured in the course of their work or duties. Of course, an employer will be held responsible if unsafe working conditions are found to be the cause of an industrial accident, particularly if a fatal one. There will be a full investigation and any contravention of current Health & Safety rules are punished very heavily. Business owners/directors are fined very heavily but also face jail in many instances. Which all rather puts paid to the company making progress. There is often no coming back from such a situation.