Get a Quote

Please enable JavaScript in your browser to complete this form.
liability insurance claim

5 Reasons Why Your SME Needs Liability Insurance

As a small-to-medium business owner, it’s essential to protect you and your business from unpredictable events that could have a damaging effect. Atlantic Insurance strongly believes that Liability Insurance is an essential form of insurance for any business to hold.

While smaller enterprises may be short on funds, investing in Liability Cover is a necessary cost for business owners that may cover your business against financial difficulty later on should any claims arise.

Learn more about this type of business insurance and why it’s important.

What is Liability Insurance?

This type of insurance essentially provides your business with protection in the event of claims of injury or damage to a third party and their property that you are potentially liable for. Whilst there are varying levels of cover available, the policy can provide you with access to specialised legal defence to help with protecting your position and your reputation, as well as cover associated costs. These claims may be related to personal injury or property damage, and advertising injury.

Generally, a claim related to property damage will have known value, while personal injury claims may be open-ended. Even in the event of a allegation of wrongdoing, a Liability Policy can trigger and defend you and your business.

5 reasons your small business needs it

Here are the 5 main ways that your business can benefit from Liability Cover.

1. Protection of business assets

Especially as a smaller business with limited financial resources, Liability Insurance covers the potential financial impost should an alleged claim of negligent act or property damage arise. This insurance also avoids the responsibility to cover legal costs and pay for the damage caused as a result of your negligence.

2. Legal compliance

In some cases, your business may be required by law to hold the right form of insurance. Workers’ Compensation is one policy that is compulsory for businesses that have employees across Australia, with rules and regulations varying between states and territories.

To avoid fines, penalties, or legal action, it is important to comply with local laws. Fair Work lists the appropriate contacts for advice on local regulations in your state or territory.

3. Peace of mind

Another reason this insurance is recommended for your business is the peace of mind that is provided. You can rest assured with the knowledge that in the event of liability claims you do not need to be concerned about the financial impact and you will have access to resources to assist.

As an employer, you are also obligated to provide a safe working environment for employees, clients, members of the public that may interact with your work and others who you may bring harm to. This cover can also cover third parties and provide reassurance that they should not be out of pocket either should any damage or harm arise as a result of a negligent act.

4. Client attraction

Carrying this insurance displays to clients that you are committed to protecting their interests. Many Business now insist on you carrying liability policies before they agree to business. It is important to demonstrate that you are trustworthy and responsible, as holding this insurance would show.

5. Protection of reputation

In the event that you are sued, or even receive a letter of demand, it is important to be able to protect your reputation and cover against any negative publicity. With this cover you are able to engage an appropriate defense and work towards resolving the claim without concern for your business’s reputation, and reduce both financial and reputational loss.

Comprehensive Liability Cover with Atlantic Insurance

Atlantic Insurance offers a range of Liability policies to ensure your business is protected in any circumstance. Our knowledgeable Client Managers have a range of experience, well-versed in recommending the appropriate policies for your business in order to offer a wide scope of protection.

Contact us today to receive a quote for comprehensive coverage and ensure your SME is prepared for liability claims.

Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.

Get a Quote

Please enable JavaScript in your browser to complete this form.