Do you Have Public Liability Insurance?

Assuming you do have public liability insurance, do you know what it covers? Some small businesses are aware they should have it, but they are not really sure why so here is a quick guide to what is covered and why it is so important.

Claims from the Public

Whatever your business offers, it must offer it to other people, either in other businesses or end user consumers. That is your obvious connection to other members of the public. But in the course of this, there may well be other occasional interactions with people, and risks of them making a claim against you. We never know what is around the corner. It could be your maintenance man up a ladder cleaning out guttering, when something heavy falls and injures a passer by. Or perhaps someone working on your premises leaves an obstruction on the public footpath and someone running by falls over it. Or maybe a visitor falls and injures themselves.

The legal costs of these claims can be high; so can the compensation claims involved. But your public liability insurance should cover it. And this could make the difference that allows the business to survive.

Bidding for Work

Having public liability insurance is sometimes a condition of a contract, especially for work in the public sector, and it is often required for joint ventures or contracts with larger firms. Without documented proof of your public liability cover, you may not be qualified to bid.

Loss of Earnings Cover

When you run a small business, public relations do not always go smoothly. If you are unlucky, unexpected happenings can get out of control and affect your reputation, and your profits. It is wise to have public liability insurance to cover such rare, but unfortunate, events if they should happen.

Why not have your outsourced bookkeepers review your public liability cover to check its relevance to your business? Or they could help you select from different quotes if you have to start from scratch.

Helping the Environment by Helping Yourself

Would you like to green your business premises and save money at the same time? Most people realise that using solar energy brings a return for the energy generated as well as keeping the building warm and light and running all the appliances and computer equipment.

A Green Deal to Fund Your Investment

But where do you get the finance to have the solar panels installed? You might already be able to get an interest-free loan for the purpose from the Carbon Trust. And next year, the government proposes to introduce a Green Deal Scheme, through which you can borrow up to £10,000, with your repayment instalments no more than the savings you make on electricity bills. If you decided to go this route, a few years down the line you would be free of the debt with far lower overheads. So more profit for your business!

As currently proposed, the Green Deal applies to both homes and small business premises, so one way or another, you are bound to qualify. It is expected to cover most energy saving projects, insulation as well as power generated from solar or wind sources.

Business Opportunities for Some

If you are in a sector that makes, advises on or installs the products that help people use less energy, this will also mean more work opportunities for future years. In this case you need to set in motion your preparations for holding the Green Deal Quality Mark.

Raising Awareness

And we all need to spread the word and talk to our customers, friends and acquaintances about the benefits the Green Deal will bring to our pockets, profit margins, homes and other premises; the related business opportunities; and of course to our environment. The UK has pledged to cut carbon emissions by eighty per cent by 2027. There is a long way to go, and the business community can help while reducing its own costs and boosting its bottom line.

Cheque Guarantees Go out of the Window

If your customers are consumers, you probably get many payments by cheque. There are still a number of years to go before cheques are likely to be phased out completely in 1918. But did you know that the cheque guarantee scheme will no longer operate after 30 June this year? If a cheque bounces you will have no protection and will lose out unless the customer has made an honest mistake and puts it right.

The Federation of Small Businesses has discovered that 75% or more of small companies do not know about the stopping of the scheme. They believe that the banks will continue to honour between £50 and £250 on all cheques issued by their domestic customers.

What will it Mean for Your Business?

You are advised to consider what this means to you. Do you offer credit and debit card facilities yet? In sectors such as window cleaners or plumbers and other trades, when the work is completed, payment is often made by cheque. Carrying around bulky card payment machines will take some getting used to, supposing they make the initial investment on one. If you have a number of operatives who collect payments, the cost could be prohibitive all in one go.

Other Payment Options

Small businesses need to be considering other options as well. The alternative of your people being responsible for cash collected in large numbers is not likely to be popular. Advances in technology are making it easier to pay using a mobile phone, but customers need to have a smart phone. It's worth keeping an eye on developments to see what might suit your business, and what you can afford. It remains to be seen whether the banks will offer convenient loans for these purposes. But it would be in their own interests to make sure that their clients can collect payments from their customers.

Don't forget to ask your outsourced bookkeepers for advice. They will be keeping on top of developments, and may well have ideas you haven't thought of.