Whether your business deals with carpet cleaning or dry cleaning, one thing is common: your services are for the public. They can be commercial or domestic, but there are always risks involved.
If you’re providing carpet cleaning services, you have to make sure that the carpet does not shrink, and that there’s no damage to its fabric. If there is, as the business owner, you will be held responsible.
This is where public liability insurance proves to be useful.
It covers for any loss or damage caused to a third party as a result of your business or products.
What Does Public Liability Insurance Cover?
Although the type of policies and coverage you have depends on your insurer, public liability insurance generally covers the following:
- Reimbursement for Injury: If a client walks into your premises and slips on a wet floor, you’re responsible if you have not placed a warning sign. Public liability insurance covers physical body harm to third parties.
- Damage to Property: If there is any damage caused to the client’s property via your business or your employees, public liability insurance compensates it. For example: you have a car washing business and one of your employees—while washing the client’s car—accidentally breaks one of the side mirrors; or they accidentally scratch the car’s bonnet—either ways, you don’t have to worry about the expenses.
- Psychological Damage: If your client suffers from anxiety attack when the elevator of your premises gets stuck, or when one of your offerings or employees harms them emotionally, public liability insurance covers for the emotional injury.
How Much Does it Cost?
The cost of acquiring public insurance liability depends on the potential risks you pose to your insurer.
If you own a business that does ‘light’ commercial cleaning or residential cleaning, you will be paying a lower premium than those who provide services for multinationals or shopping centers.
Pro Tip: If you want to find out the cost of your public liability insurance, request a quote from your insurer. Some insurers provide free insurance quotes.
However, it is important to note that the type of cleaning services you provide can also add to the costs. If you provide high rise window cleaning services, it can cost more than for those who provide car washing.
If you’re a sole trader, i.e. self-employed, it’s important to look into other insurance policies as well. This is because sole traders do not have access to sick leaves and insurance can take up the majority of your income. Income insurance will be beneficial with public liability insurance.