All businesses open to customers or to the general public should be aware of risks and find ways to reduce public liability claims.
For instance, a restaurant owner should list ingredients like nuts in his menu, or put a warning sign when the floor is being washed. Businesses should first ensure that they have an adequate public liability insurance in place.
However, accidents can’t be avoided despite all security measures. Thus, you should be aware of the 5 keys steps to take when dealing with a potential public liability claim:
1. Take action
The first thing to do is to make sure the situation is under control, and things do not get worse. Take action to reduce the damage or call an ambulance if any person is injured.
2. Contact your insurance agent/broker
It is important to report an incident as early as possible so that your agent or broker can guide you through the claim procedure. They will be able to review whether your insurance covers the incident in question, and look through potential exclusions.
3. Do not admit liability
Do not offer to pay compensation before consulting your insurance company and lawyer. Failure to do so will jeopardize your ability to defend your case and get refunded by your insurance company. Any document or correspondence should be transferred to your insurer.
4. Keep a detailed record
All records are important as they are evidence of your activities and actions. Write down any communication you have had with the injured customer and keep a record of phone calls, emails or face-to-face conversations. Also, do the same between you and your insurer and keep copies of any document you may receive.
5. Seek advice from your insurance agent or broker before correspondence
You may receive a letter from the claimant’s lawyer. Do not reply to it. Contact your insurance agent or broker and seek their advice. The lawyer from the insurance company will take over here onwards, and manage the legal aspect of the public liability claim.
At Clema Risk Solutions, we can help you find the solutions that will best fit your business insurance requirements. Contact us at hello@clema-rs.com if you have any questions regarding your business insurance or a public liability claim in particular.
To find out more about our various insurance solutions for SMEs in Hong Kong, please visit our website.
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