Public liability insurance is one of the most specialised and well-curated types of insurance that covers businesses and individuals for third-party claims. These claims include property damage, legal issues, bodily injury, or any other mishap during business operations. Public liability insurance is beneficial for businesses of all sizes. It can provide confidence by protecting businesses from any financial loss.
However, only some small and medium business owners know the potential for public liability insurance. Many need help comprehending its role. A recent survey was conducted on around 560 freelancers and SMEs to study the impact of the current economic situation and gather insights from the past 12 months to decode the opinions of businesses on late payment and know the top business concerns.
Top Impacted Industries
As per the study, leisure, retail, hospitality, and construction were the most impacted industries in the last 12 months. These industries are more vulnerable to financial losses like property damage, injury on the job site, and much more. Legal claims and public concerns were the critical issues of these industries. They comprehend how one event can result in a significant financial loss. Moreover, the study also revealed that around 78% of business owners and freelancers are experiencing a rise in the cost of raw materials. Thereby impacting their growth and success.
In such market conditions, public liability insurance can be a great saviour. It can protect the business from any financial instability or loss. As a result, the company can continue to focus on its core activities and work towards retaining its customer base.
Top 10 Concerns for SME Businesses
The study also revealed the top 10 concerns for SME businesses. These include cash flow, profitability, customer acquisition, tax liabilities, economic uncertainty, business growth, late payments, regulation compliance, cyber-attacks, and access to finance.
Public liability insurance can successfully help SMEs by extending support in legal claims. It allows businesses to manage their cash flow efficiently and provides coverage for third-party claims. General liability insurance also covers product and advertising liability.
Insights into the Past 12 Months
The study also provided insights into the past 12 months for SMEs. The findings revealed that 40% of SMEs experienced a decline in revenue during this period, while 31% reported an increase. Additionally, 54% of SMEs had to furlough staff, and 15% had to make redundancies.
Public liability insurance can help SMEs mitigate the financial impact and help their businesses stay on track despite challenging situations.
Sentiments on Late Payment
The study also revealed that late payments are a significant concern for SMEs. The findings showed that 60% of SMEs experienced late payments during the past 12 months. Additionally, 24% reported that late payments severely impacted their business.
Public liability insurance can help SMEs address the financial impact of late payments. Some general liability insurance policies include coverage for loss of income due to late expenses or bad debts.
The study conducted by Markel UK highlights the financial difficulties faced by SMEs in the current economic situation. In addition, the data offered some valuable strategic insights for any business while choosing the most suitable public liability insurance.