Here’s the scenario. You’re visiting a key client with a colleague. While you’re presenting your latest offering, you get a little too animated, and a sweeping arm gesture sends a tray of coffees flying. You’re probably thinking: “What’s the problem, accidents can happen,” but the hot drinks don’t just spill onto the office floor. Instead, they ruin two of your client’s state-of-the-art laptops. So what do you do?
With such an important client, your first thought is probably to offer to pay for the damage, which could well result in a bill that’s well into four figures. But wait, what if the machines contain vital information that is now lost. What value could you put on this? You don’t want to pay out too much, but equally you don’t want to damage this key business relationship.
This is never going to be an easy situation to be in, but there is a way you can help to diffuse the potentially explosive incident. If you’re covered by public liability insurance, you can simply tell your client to estimate the cost to their business of the machines and data loss, and that your insurance company will assess the claim and deliver fair compensation – a professional and sensible way to prevent a potential crisis turning into a catastrophe.
Of course, the accident might have nothing to do with a client, it could simply affect a member of the general public. For example, you decide to take a marketing stand at your industry’s big trade show to get some publicity for your company. But during the show a piece of your stand breaks off and injures a passer-by – an embarrassing episode that could also turn into a costly one if that person decides to sue you.
Public liability insurance covers your business against legal costs and compensation payments resulting from injuries or property damage to your clients, contractors or members of the public caused by you or one of your employees. This could take place on your premises, at a client’s offices or any other business setting, such as a trade show or conference. This kind of cover offers you peace of mind, and makes your business look more professional. It means you can let your insurer deal with any problems, while you get on with running your business. But perhaps being a little more careful in future.