Home Business Insights & Advice Am I covered? Shielding your business from compensation claims

Am I covered? Shielding your business from compensation claims

by Sarah Dunsby
9th Jul 18 8:50 am

Running a business is tough and there’s always a risk you could end up facing compensation claims. While no business wants to think about it, things can (and do) go wrong. Whether it’s a customer who has injured themselves on your property, or whether you’ve given wrongful advice which has led to a negative outcome for a client, these mistakes can cost you dearly if you aren’t covered.

Here, we’ll look at how your business can shield itself from compensation claims.

Ensure you have adequate insurance

The very first thing you need to do to protect yourself against compensation claims is ensure you have adequate insurance. Legally, your business is required to have at least £5 million employer’s liability insurance cover. However, you’ll also want to consider adding Professional Indemnity insurance.

This will protect you in case of an omission, error or negligent advice claim by a third party. The cost of trying to defend yourself in court could cost a significant amount of money. So, having this type of cover is highly advisable. Just be sure you seek out respectable providers with a lot of experience within the industry.

Focus on safety in the workplace

One of the main risks you face when you open your business up to the public, is accidental injury claims. It’s not just the public who could potentially file a lawsuit against you either; your employees could suffer an injury at work too. Therefore, it’s vital you make the workplace as safe as possible.

Be sure to tackle any repairs and maintenance which need doing, such as damaged stairs and loose railings. You’ll also want to ensure you place adequate signs to highlight a wet floor.

Know how to handle accidents and complaints

It’s not always possible to prevent an accident in the workplace. However, it is possible to protect yourself against a claim if you know how to handle the situation.

Firstly, you’ll need to call for professional help if the person is injured. Recording the incident is crucial as you’ll need to show exactly how you handled it. You’ll need to collect statements and record them in case they’re needed during the enquiry. Doing everything by the book will protect you if a claim is made against the business.

These are just some of the ways to protect your business against compensation claims. Accidents can and do happen, but how you handle them will determine how much it impacts your business.

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