Public liability insurance policy is suitable for all organizations, business or industrial units exposed to liability that may arise due to accidents while on their normal business routine. Any business which has to do with clients, the public or agents have to take public liability insurance. If your business involves legal or or financial liabilities on you by third parties, then you should consider public liability insurance to protect you from problems concerning such unfortunate occurrences.
Public liability is made to protect business owners against claims, if a claim was filed against a business, the business owner policy will cover the cost of the expenses and also other compensation the business owner needs to pay.
Claims can arise from different situations, for example, a member of the public could get him/her self injured due to your equipment, your policy then comes in. Public liability insurance cover claims of property damage.
What does public liability insurance cover?
Public liability insurance in general, covers any unexpected events or occurrences arising due to your business routine, that may pose a great risk or problems to your business. However, you’ve to be certain about the nature of events and limit of financial compensation base on the risk detected.
Public liability insurance covers claims made against your business by members of the public, clients, or contractors for property damage or injury. This could be based on the result of business operations or from an accident. If your business is found to be the responsible, this type of insurance will cover the cost associated, compensations and legal fees like the cost of defending yourself self in a court of law.
Public liability insurance make sure you are protected in cases like this and offers something different unlike other insurance. For example, employers liability covers claims from employees and professional indemnity covers claim of fault with your work. Public liability insurance have comprehensive cover that encompasses every policies that your business requires.
Some claims are less predictable and may arise due to any unfortunate events, often they are not directly linked to the organizations. The following below are the list of common coverage:
Claims that may arise due to accidents, injuries or damages on third party property.
The act of God
Pollution and contamination
How much public liability insurance do I need?
The cost of public liability insurance varies due to diverse nature of business and types of industry a firm operates in. It is not mandatory to have a public liability policy therefore how much cover you take out depends on you.
The best way to evaluate how much cover your business needs is to consider some factors such as how much can it cost to repair a damage and the possible extent of compensation.
To be more specific, the amount of cover you need will be base on the following details;
Level of interaction with the public
The size of your business
Your claim history
Scale of contacts
The level of risk associated with the industry.
A lot of businesses always interact with the members of the public and this interaction comes with risks. Even if there was a warning sign and a customer still gets injured by your equipment it could end up with a lawsuit in your hands.
If an individual files a lawsuit against your business and his/her reason is covered by your policy, then you file a claim with your insurance company. Your insurance company helps to pay for damages up to your policy limit and also covers your legal fees.
What is the alternative to public liability insurance?
The best alternative to public liability insurance is the general liability insurance because it covers everything public liability insurance does and more. General liability insurance is more comprehensive and more readily available than public liability insurance, it covers personal and advertising injury.
Most businesses prefer the general liability insurance while some consider the professional liability insurance and product liability insurance. When there is a claim of financial loss as a result of professional negligence or errors, professional liability insurance protect your from such. When there is a claim of concerning defective or bad products, product liability insurance protects you from such cases.