21 Sep Don’t put limits on liability
There are many legal liability risks facing a business, one of these is navigating the minefield of renting property as a business owner.
A typical business policy provides Public Liability insurance, which includes Tenants Liability; specifically designed for businesses that rent commercial property. This provides coverage when renting a property where they are held legally liable by their landlord or any other third party for any damages, loss or injury incurred, as a result of their occupation or use of the premises.
Many cases brought against tenants merely need to be defended. Of added advantage, the cover afforded under a Liability policy also provides legal defence costs to defend cases brought against the business by the landlord or any other third parties.
As an example; a tenant has a fire that started in their rented premises, and it causes extensive damage to the building. In this case, the landlord could hold the tenant liable for damages to the building due to negligence in not maintaining their equipment. The Liability policy would step in to provide legal defence costs and deal with any awards, where it could be proven the tenant was legally liable.
Don’t cut costs
Liability insurance is of vital importance and should always be included in an insurance programme. Usually, liability premiums are relatively low in relation to the cover they provide. Never skimp on this cover…a business should always ask “What could put us out of business?” …a significant liability claim with associated costs and awards, could easily put anyone out of business.
Click here for an article about letting (or not) your personal property.