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Public Liability Insurance

Why Your Business Needs Public Liability Policy

why business needs public liability policy

Why Your Business Needs Public Liability Policy

Public liability insurance is a very common type of business insurance. More of restaurants, hospitals, schools, colleges, contractors, and other office owners are opting for it. Should you buy it too?

PL insurance covers the cost of personal injuries, as well as damage to property of the third-party, on your business premises in connection with the functioning of your business. It also covers the cost of  legal expenses and representation if the third-party in question sues you. For more information on public liability insurance, please go here.

Who Needs Public Liability Policy? (Some Examples)

If you interact with clients/customers frequently on the business property, you should definitely have PL insurance. Because if you don’t, you are exposed to risks of a third party sustaining bodily damage or damage to their possessions in your property. What if that person slips on the wet floor and gets injured? Even if you had the “wet floor” sign, they may decide to sue you. What if you or your employee spill something on the cloth, shoe or bag of the visitor? Despite it being an inadvertent incident, they may still sue you. Admittedly, such legal claims may inevitably be dismissed by the court – but it won’t before first draining your resources in legal expenses.

Different Types:-

There are two types of public liability insurance. One covers the industrial risks, which is ideal for businesses manufacturing hazardous chemicals and materials and more. The other one covers non-industrial risks, which is ideal for restaurants, colleges, IT companies, clinics, and more.

Compared to other types of business insurance (like general liability policies), public liability insurance limited scope. In the sense, it covers the mentioned instances when it happens on your business property. So, it is also comparatively affordable. (Of course, the cost depends on so many different factors – right from the kind of coverage you’re getting to the kind of business you own to who you’re purchasing the policy from. But that’s a whole different conversation altogether).

Connect with a Licensed Insurance Broker

So, again, if you run a business wherein customers/clients come on your premise and you interact with them frequently, you should seriously consider buying public liability insurance. Get in touch with a licensed insurance broker, discuss your needs, and make your purchase. Make sure you customize your plan and get enough coverage. Also, at the same time, be aware of all those aspects or things that this policy won’t cover; like professional errors, business property damage, damage arising out of fines, and more.

Discuss with your insurance broker, learn more about PL insurance, and make an informed decision. Depending on the kind of business you run, you may also need other types of business insurance. Your broker will also help you establish your risks and figure out other policies you may require to mitigate the risks of lawsuits against your business and you. I hope you will understand Why Your Business Needs Public Liability Policy.

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