Business insurance which completely covers the cost of claims or damages made by any member of the public from any form of association with your business operations or activities is known as Public Liability Insurance. There are multiple packages of public liability insurance and in this article, everything you need to know about public liability insurance will be discussed. By the way, see here for your Commercial General Liability Insurance.
Everything you need to know about public liability insurance.
As a business, you occasionally relate with members of the public on a large scale, be it products you produce, services you offer, or minute things like injuries that occur in the business premises. There are risks involved and these risks could lead to a lawsuit. More often than not, these lawsuits seek redress in the form of compensations, damages. The method of setting up a financial system solely for this purpose is known as Public Liability insurance.
This type of insurance sees to it that whenever such a lawsuit is filed against your company, you get to file a claim with your insurance company for the legal costs of the lawsuit. However, this is not without limits.
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When it comes to public liability insurance, there is a lot to know and proper guidance could aid in choosing the perfect policy plan.
In this article, we would be looking at the following;
- What does Public Liability Insurance Cover?
- Why Do I Need A Public Liability Insurance
- Are there possible alternatives?
- FAQS
What does Public Liability Insurance Cover?
Although packages differ, all general public liability insurance covers the following amongst others;
- Property damage; this kind of damage covers products to a third party’s belongings that got spoilt because of your business/company’s negligence. For instance, you own a restaurant, and one busy day, an employee spills the contents of a tray on a customer, damaging her dress and purse on the spot. This kind of policy helps cover the costs of the dress, purse, and whatsoever damaged property within
- Bodily Injury; one of the most common forms of bodily injury in most businesses that occur as a result of a wet floor, failure to put up warning signs, and general negligence. This is the most claimed public liability insurance. If a customer gets injured on the business’s premises as a result of the negligence of the company/ business, this insurance can be claimed to pay the damages that may be claimed by the injured personnel
- Legal Expenses; if your company is sued for damages of any sort, bodily injury, or property damage, you would require the services of a lawyer either you would contest the claim or not. This insurance also covers the costs of hiring an attorney.
Do I Need a Public Liability Insurance?
An off-the-cuff answer to this question would be in the affirmative, Yes. However, the need for public liability insurance and the type of public liability insurance to subscribe to largely depends on your type of business, your location, region et cetera. Public liability insurance is largely affordable, but this also implies that it doesn’t cover much damage.
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Are There Possible Alternatives?
Yes, there are possible alternatives to public liability insurance. These Insurances include
- General liability insurance. This type of insurance covers a wider scope of possible damages like advert injury
- Product liability insurance. This is perfect for manufacturers
- Professional liability insurance; protects the business r company from claims in financial loss due to negligence
FAQs
Public Liability Insurance Costs?
These costs largely differ from region to region and several packages
Conclusion;
To keep your company’s head above water and to avert unprecedented expenses, public liability insurance could be one of the most cost-effective insurance to opt for.
