Business failure can be caused by many things. Technological disruptions can make certain businesses obsolete. Think of businesses that used to manufacture compact discs. Since the USB drive technology and cloud storage were developed, compact discs became obsolete, forcing many manufacturers to close shop. Natural disasters can also force a business to shut down, especially if the business was not insured. Injury lawsuits from customers and other third parties can also cause business failure. The cost of fighting an injury lawsuit can be incredibly high while the cost of damages can be financially crippling. Imagine having to pay millions of dollars in damages awarded by the court. Most businesses cannot afford to pay these amounts. That is why public liability insurance is a basic requirement in business. You can get broadform liability insurance here to protect your business.
What’s the Difference Between Broadform and Public Liability Insurance?
Public liability insurance provides coverage for lawsuits arising from claims of personal or bodily injury, financial loss, property damage, errors, or omissions. These are usually the most common claims in injury lawsuits against businesses.
It is important to note that product liability and advertising liability are not covered by public liability insurance. This means that if you have public liability insurance, but a client files a product liability lawsuit against you, you’ll have to pay the legal fees and cost of damages out of pocket. This means that the only way to get sufficient protection against injury lawsuits is to buy broadform liability insurance.
As the name suggests, broadform liability insurance offers wider or broader coverage than public liability insurance. It is important to note that many business insurance policies offered in Australia and the surrounding countries nowadays offer broadform liability insurance. These are usually bundled policies that offer a wide range of liability protection for businesses, including advertising and product liability coverage.
Another important point to note is that all broadform liability insurance policies provide public liability insurance. However, not all public liability insurance policies offer broadform liability insurance. Be sure to keep this in mind when doing your research because you want to buy a policy that will provide you with sufficient coverage.
Choosing the Right Policy
Since there are many insurance companies offering business insurance products, you must take time to carry out some research to identify the right insurer for your needs. In this regard, the following are key factors to take into consideration when conducting your research:
You must do some research on the reputation different insurance companies have developed over the years. This is because you want to buy an insurance policy from a trusted and reliable insurance provider. Therefore, it’s recommended you do some research by reading reviews and testimonials written about the shortlisted firms, you’ll learn about the reputation of the top-rated insurance companies. Only trusted and reliable insurers with an impeccable record of service delivery should get special consideration.
When buying an insurance policy, you have to consider the premiums charged by different insurers. This is because you not only want to save money but also get an insurance policy that offers the best possible value for money. Therefore, you have to request quotes and do a comparison to identify the most affordable broadform liability insurer.
3. Coverage Offered
An insurance policy is as good as the level of liability coverage it offers. By reading the inclusion clauses as well as the exclusion clauses, you will be able to find out exactly what an insurance policy covers and what it does not cover. This will help you make a decision that’s informed. The ideal policy should offer public liability insurance, advertising liability insurance, and product liability insurance. By reading the terms and conditions of the policy document, it will be possible for you to make a well-informed decision.
4. Coverage Limits
The liability coverage limits of a policy matter a great deal. It is not enough to have a policy that offers coverage for all the liabilities you want if the extent of liability coverage is insufficient. The ideal policy should offer enough coverage. If the average cost of product liability cases is $2 million, you should carry a policy offering more than $2 million in product liability coverage.
Some insurance companies have a bad reputation in the industry. This can be attributed to their failure to settle claims filed by policyholders. Since you expect your claims to be paid promptly, you must work with insurance companies with a history of paying claims without any hassles.
Who Should Have Broadform Liability insurance?
Every business that sells goods to the public must have broadform liability insurance. This is crucial because the goods you deal in are not perfect. Any defects can lead to a lawsuit that may cripple your business. As manufacturers transfer liabilities to you, be sure to cushion your business against product liability claims by purchasing a broadform liability insurance policy. In case you decide to purchase a bundled business insurance policy, you must read the entire policy document to find out exactly what the policy covers. This research will provide you with information that may help you to make an informed decision.
Where to Buy Broadform Liability Insurance
When looking for the best insurance policy for your business, it is recommended you work with a trusted and reliable insurance broker. These are firms or professionals with plenty of experience in the industry. They have the resources needed to help you find the perfect liability insurance for your needs. Insurance brokers can also compare the premiums charged by different insurance companies to identify the most suitable insurance company for your coverage needs. The ideal broker should be independent. It is a well-known fact that some insurance brokers are agents of insurance companies, so they do not have the interests of consumers at heart. To get the best results, be sure to only shortlist independent insurance brokers. These brokers can scour the market and search for the most suitable insurance policy for your needs.