Running a business without insurance can have devastating effects, yet far too many firms are taking the risk, according to insurance broker Jardine Lloyd Thompson (JLT).
Food and drink processors may be ignoring the need for professional indemnity (PI) and public liability insurance (PL).
JLT is urging them to ensure they have appropriate insurance cover in place as a single incident could irreversibly damage their businesses.
Public liability insurance provides protection to your business in the event that physical loss or damage is caused to a third party or their property.
Professional indemnity insurance protects businesses in the event that a third party suffers a financial loss as a result of errors or omissions in advice or professional negligence on your part.
Insurance is an even more pressing matter now the Corporate Manslaughter Act 2007 has come into effect. The legislation means employers can now be held personally liable if an employee is killed while doing their job.
Ged Smith, regional managing director of JLT’s operations in the North West, said: “The vast majority of people would not even consider getting into a car without cover because a seemingly innocuous accident could ruin them financially, perhaps even professionally.
“If the other party makes a claim for injuries or property damage the legal costs can be very expensive, never mind any potential payout.
“However, many firms in the food sector are subjecting themselves to a similar situation by not having PI and PL insurance - a single claim could ruin their business.”
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