What is Corporate Liability Insurance?
If you run your own company, it may have been recommended to you that you should look into corporate liability insurance as a matter of priority. Naturally, it’s important to ensure that your business, its management and its employees are correctly covered under all circumstances, but what does this particular term mean, and how could obtaining a corporate liability policy help you and your company? Rigby Financial is a family owned independent insurance intermediary & financial advisory firm specialising in providing a wide range of insurance cover for both individuals and businesses. Take a look below to see their definition of this important form of cover, the reasons you should consider it for your company and how you can go about securing a policy that suits you and your business perfectly.
Corporate liability is a term that defines a situation or instance where a company is responsible for actions, or actions undertaken by its employees, that could be deemed unlawful. The term can also refer to a lack of action where an action was required to ensure the company and its staff were correctly adhering to the law. If a business is found liable as a result of any of the above criteria, it and its management or employees can be prosecuted in a court of law. Circumstances under which a business may be found liable may include instances where illegal undertakings were performed for the benefit of the company, or in which the management of the company has been in any way negligent or irresponsible. Corporate liability insurance, therefore, is cover that protects you, your business and its finances under these circumstances.
Why Should I Acquire Corporate Liability Insurance for My Company?
It’s extremely important that you work to ensure the best possible legal protection for your business. However vigilant and organised you and your management team may be, there is always the chance of an oversight or a mistake - and it’s never worth the risk of allowing one of those mistakes to land you in costly legal trouble without the right protection. Corporate liability insurance provides that much-needed security, covering the funds you may require to defend yourself and your company in court against claims brought against you. There are multiple different claims that are covered by this type of insurance, from workplace injuries to breaches of contract, employee grievances and beyond. It can be extremely stressful continuing to undertake the duties required of you within the day to day running of your business while also preparing a defence in a court case, and that goes double for situations where your firm’s financial situation is not suitably insured. Different insurance brokers offer multiple different options and areas of cover, so you can pick and choose the policy that is best for you in order to achieve the peace of mind that comes with knowing that your company and its finances are safe, whatever the future holds.
How DoI Find My Perfect Corporate Liability Insurance Policy?
If you already run your own business, you should already have organised some form of cover with an insurance broker. That said, you don’t necessarily have to stick with the same firm to acquire your corporate liability insurance if they don’t offer the exact policy you require. Shop around, browse websites and read testimonials and reviews to shortlist the best options, then call each broker up to discuss your needs. The majority of firms offer a good amount of flexibility, so you should be able to find exactly what you want. If you’re only just launching your company, this advice still stands but also goes for any other form of insurance you require. The earlier you arrange cover that is as comprehensive as possible, the safer your business will be!