If you follow the national news you will already be aware of the sharp increase in compensation claims over the past few years.
Despite there being fewer accidents, the number of claims is still rising rapidly. This ‘compensation culture’ which we hear so much of has been partly blamed for stalling the growth of the UK economy, but what can we do about it?
Insurance company, Endsleigh, has recently urged small and medium businesses across the UK to consider the implications of not having public liability insurance. Most people associate costly work accident claims or employment related compensation claims with large corporations. This isn’t always the case. In a society where people are increasingly willing to pursue a claim for compensation, many small businesses risk being caught out.
The difference between a large organisation and an SME is that a large organisation will often have the capital to cover any compensation payouts and legal fees. For many small businesses, even a very minor claim could put them in severe financial difficulty.
Currently SMEs are only required by law to have an up to date employer’s liability insurance policy. Though it may seem like an unwanted and potentially unnecessary expense, upgrading your insurance policy so that it covers you for public liability could save you a significant amount of money and stress in the future. This is particularly true for public facing companies or those who have premises which could potentially be accessed by the public.
In these challenging economic times it’s already difficult for SMEs to make a good living. Most companies will forgo this extra insurance in an attempt to save money. Unfortunately, this could end up being a false economy. If you want to safeguard the future of your company and protect yourself against a debilitating compensation claim, upgrade your insurance now.