Public Liability: Are you sufficiently protected? Important tips for 2025!

Public Liability: Are you sufficiently protected? Important tips for 2025!

Business liability insurance is essential protection for companies because it covers liability risks and covers the costs of property, financial and personal damage caused to third parties. Loud Top agricultural It is important that entrepreneurs regularly review their insurance contracts to ensure that they offer sufficient protection.

An adequate insurance sum should be at least 5 million euros for personal injury and property damage. Old contracts in particular with smaller amounts could no longer meet the current risks and should therefore be adjusted. The insurance also protects against unjustified liability claims, an important aspect in order to avoid unexpected financial burdens.

Important aspects of business liability

Another central topic is the so-called sublimits. These limitations may mean that damages are not always fully covered. An example illustrates this: A building cleaning company loses a key, which results in the replacement of an entire locking system. The damage amounts to 25,000 euros, but the insurance only provides a sublimit of 20,000 euros. In such a case, the directors have to pay 5,000 euros out of their own pocket, which can also damage the company's reputation Peppermintia reported.

It is therefore crucial to regularly check existing contracts for such sublimits and adjust them if necessary. Some providers even forego sublimits altogether, which guarantees comprehensive settlement of all damages.

Scope of coverage and special risks

Business liability insurance usually also includes insurance cover for the private liability of the entrepreneur and his family. Children are automatically insured, although this protection ends when they graduate from school or come of age, depending on the specific policy. Older contracts may also have restrictions, for example on the storage of fertilizer, which in new contracts has no time limit, while older contracts could have a limit of one month.

When it comes to construction work, often only old contracts are insured with a coverage amount of 300,000 or 500,000 euros, while new contracts usually offer full protection up to the general coverage amount. Animal-keeping businesses also have to take special liability risks into account and prove that no damage has occurred.

Entrepreneurs are well advised to report changes in their business, such as new business areas or expansions, to their insurance company immediately. This also applies to leased areas, which can often be insured at a lower premium price. Furthermore, the insurance protection conditions for self-propelled machines and the storage of heating oil, diesel and mineral oils should also be observed in order to ensure comprehensive insurance protection.