If you operate your own small company, possibly as a sole contractor or as the company of a couple of employees, then you likely already understand that managing money is critical to the achievement of your company. The cheap general liability insurance for contractors that you buy may play a significant role in protecting your livelihood and you might well have had particular policies, including general liability cover, recommended to you. So, why would it be helpful for you to buy liability insurance?
Cash flow might well be among the greatest issues for you and you probably already take measures to maintain your company on an even keel as far as possible. You might well find the advantages of making certain that you’ve got basic small business insurance cover in place to protect several facets of your company. However, have you factored in the fiscal issues that your company could have if something happens to somebody as a consequence of something that you do?
Among the main reasons why individuals who operate companies like yours elect to carry out public liability insurance is just to acquire additional protection. If anything that you do leads to some third party (if they’re a customer, a supplier or a visitor into your assumptions ) with an accident or becoming injured then you might need to pay out substantial amounts of money as reimbursement. With public liability cover in place this might not follow that you need to get the money from your pocket or from your company profits.
The simplest way to work out if you need to buy insurance for general liability would be to consider the worst that may occur. What could you do, for instance, if you’re working on somebody ‘s electrics and the man you’re operating for tripped over one of your wires and broke their leg? Can you manage to cover legal expenses and compensation when they took your company to court and sued you?