Liability Risk: The Exposure Many Businesses Overlook

While business interruption is about your income, liability risk is about your exposure to others. And this is often where businesses are more vulnerable than they realise.

What Liability Actually Means

Liability insurance is designed to protect your business if it causes loss, damage, or injury to someone else.

This can include:

• A customer injured on your premises

• Property damage caused during work

• Professional advice that results in financial loss

• Products that cause harm

For some industries, this risk is obvious. For others, it feels remote.

The issue is not frequency. It is severity.

Why Growth Changes Liability Risk

As businesses grow, their exposure often grows with them.

More staff. Larger contracts. Higher revenue. More complex supply chains.

Yet insurance cover is not always reviewed as growth happens.

A policy that was suitable three years ago may no longer reflect current operations.

The Mistake Business Owners Often Make

Many business owners assume their insurance automatically grows as their business grows.

In reality, sums insured limits and policy conditions need to be reviewed.

A claim that exceeds your policy limit does not disappear. The balance can sit with the business.

That is a financial risk that can undo years of hard work.

What Good Advice Looks Like

Good advice is not about selling the biggest policy.

It is about:

• Understanding your actual exposure

• Identifying realistic worst-case scenarios

• Structuring cover proportionate to your operations

• Reviewing as your business evolves

Risk does not stay static. Neither should your insurance.

A Final Thought

You cannot remove risk from business.

You can understand it.

And once you understand it, you can decide which risks to retain and which to transfer.

That is the role insurance should play.

Not fear.

Not pressure.

Just informed decision-making.