Many small business owners focus on protecting physical assets and income but underestimate their exposure to liability risks that sometimes surface in very unusual and unexpected ways.

This is according to Rishai Neerachand, Executive Head of Business Insurance at Miway, who warns that a single incident such as a slip and fall, incorrect advice, or damage to a customer’s property can escalate into legal costs and compensation claims that threaten cash flow and business continuity.

“Liability risk essentially provides protection against being held legally responsible for damages caused to a third party, whether that’s a customer, supplier or member of the public,” Neerachand explains.

Despite how common these scenarios are, liability risks are often misunderstood or incorrectly assumed to be covered under standard business insurance. “Not all liability risks are automatically included in a standard policy, and that’s where many businesses are caught off guard. Different types of liability require distinct forms of cover, each addressing a specific exposure,” says Neerachand, outlining the various forms of cover.

• Public liability insurance typically covers claims arising from injury or property damage suffered by third parties on a business’ premises or as a result of its operations. This could include anything from a customer slipping on a wet floor to damage caused during off-site work.
• Product liability, on the other hand, applies when goods supplied by a business cause harm or damage after they have been sold or distributed.
• Professional indemnity insurance is more specialised, covering financial losses suffered by clients due to errors, omissions or negligent advice provided in a professional capacity.

“Each of these addresses a different risk and gaps can arise if business owners assume they are protected across the board without reviewing the detail of their policies,” he explains.

Compounding the issue is the fact that the risk profile of any business is not static and as operations evolve, so too does exposure to liability. Introducing new products or services, expanding into different locations, or even shifting to online channels can all create new risks.

“Growth is positive, but it often brings added complexity from a risk perspective,” says Neerachand. “For example, a business that starts offering delivery services or advisory support may inadvertently take on additional liability exposure that wasn’t relevant before. Without reassessing cover, those risks remain uninsured.”

It is therefore critical for businesses to regularly review their liability exposure. “Doing this is a fundamental part of responsible business management,” Neerachand notes. “It’s not just about protecting against worst-case scenarios, but about ensuring your business can continue operating even when unexpected events occur.”

Tailored insurance solutions play a key role in closing potential gaps. By aligning cover with the specific nature of operations, industry and growth trajectory, business owners can ensure that liability risks are properly accounted for.

“At Miway, we work closely with customers to understand how their operations are changing and where their exposure lies,” adds Neerachand. “Liability cover is not an optional extra – it’s an essential layer of protection that supports long-term sustainability, builds credibility, and gives businesses the confidence to grow,” he concludes.

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