Broadform vs. General Liability: Which Coverage Suits Your Needs?

Nobody likes to imagine the worst scenario happening to their business. But the reality is that even though damaging situations are rare, their impact can put you out of business. 

General Liability Insurance protects your business from "general" claims involving damage or injury to your business property or employees, but is that enough? Remember that Public Liability Insurance falls under General Liability cover, and Product Liability Insurance is an optional add-on. 

Let's explore the difference between these products and discuss the circumstances where Broadform Liability Insurance from Budget Insurance be a worthwhile investment.

Lesser-known consequences of not having liability insurance for your business

Many business owners are aware of the typical risks associated with running a business, and why you would need insurance, but take a look at some of these lesser-known risks: 

• Loss of business contracts

Larger businesses or government organisations can legally require the vendors they work with to have Broadform Liability Cover — even if the risk of something actually happening is low. Without this, you can lose out on lucrative contracts or prevent your business from scaling up and taking on bigger clients.

• Reputation damage & bankruptcy

Customers, employees, and businesses can quickly lose trust in your company if they discover that you haven't put simple protective measures in place. Imagine being sued or finding your business in a situation where you need insurance assistance, only to end up bankrupt and downtrodden.

Legal troubles and financial instability create tension, stress and uncertainty among your staff. This could even affect their productivity, job security, and retention.  

• Personal asset risk

When you have Public Liability Insurance, you protect your business and yourself in the event of a third-party claim. This is a valuable safeguarding measure.

• Reduced competitive edge

The delays that come from not having liability-related protection and paperwork on hand can lead to delays when dealing with lenders, suppliers, and clients, giving better-prepared competitors an edge over you.

The difference between Broadform Liability Insurance and General Liability

Now that you know of the potential consequences of life without Liability Insurance, you should get to know the difference between Broadform Liability Insurance and General Liability. Here are a few key differences that can help you make an appropriate choice.

General Liability Insurance

If you are looking for a basic level of protection, General Liability Insurance is a good place to start. It will protect your business against the most common business costs arising from liability claims such as claims involving bodily injury, property damage or advertising injury. This means that should someone hurt themselves or feel that your business damaged their brand, you would be covered for the legal fees involved in the case (no matter the outcome) as well as any medical expenses or damages for which you are found liable.

Broadform Liability Insurance

Broadform Liability Insurance goes over and above generalised coverage protection. For example, it can include coverage for:

• Protection against slander or false advertising provided your business is note media related.

• More specific insurance with higher limits of indemnity available.

• Wider array of extensions available.

• Ability to tailor policies, which is not always possible on a commercial policy.

• Access to product specialists as opposed to generalists who handle commercial policies.

How to work out how much Broadform Liability your business needs

Your next question will likely be which form of insurance you should opt for and how much coverage you will need. Ask yourself the following questions to get a general idea.

• What risks do I face?

If your business has physical premises that are constantly frequented by members of the public performing physical activities, your liability risk will be higher. Even if you take every safety precaution available, some types of business environments will face unavoidable levels of foot traffic and physical interactions. For example, a child's play area and café will face a higher risk than an office where you create and sell personalised print wedding invitations. 

• Who and what do I work with?

If customers, clients or even suppliers face higher than average risks on working with you, it means the stakes for losses are higher and that you should be prepared for claims resulting from these losses. These high-risk industries often require a minimum level of insurance to allow you to offer the service in the first place. 

Get a Budget Insurance quote

Business risks can come with high costs, legal consultations and paperwork. In reality, most of the stress of liability-related claims comes from wondering how you will pay for it all. Having the right type of insurance can remove the sting of financial crippling and stress — and it's something that Budget Insurance can help with. Get a Budget Insurance quote today to get started with selecting the Broadform or General Liability Insurance coverage your business needs.