What You Need To Know About Public Liability Insurance
Insurance is essential because it helps to protect businesses against potentially considerable financial losses. It can also help companies to continue operating after an incident has occurred.
So, what is public liability insurance?
This type of insurance protects businesses against third-party claims for bodily injury or property damage. This can include claims from customers, suppliers, or members of the public.
This type of insurance does not cover claims from employees or shareholders. It also does not cover damage to your property or injuries to yourself or your employees.
Businesses of all types and sizes can benefit from this type of insurance. It can provide peace of mind in knowing that you are protected against claims that could otherwise be financially devastating.
Here are three things you need to know about public liability insurance.
Is it legally mandated?
Public liability insurance is not usually a blanket legal requirement, but it is highly recommended, especially if your business or activity involves contact with the public. It is essential to note that this may differ depending on your state or territory and the industry or profession.
In most cases, those who work on building sites may be legally required to have public liability insurance. The law may also stipulate the minimum cover level you need to be compliant. Therefore, it is crucial to check with your state's authority.
How much cover do you need?
The amount of public liability insurance you need depends on the type of business or activity you are involved in.
For example, a business that provides professional services such as consulting or accounting will generally require less coverage than a restaurant that always has a constant stream of customers who are coming or leaving. This customer traffic increases the risk of someone being injured on your premises.
You may also be tempted to select a package with lower premiums to save on business costs. However, cheaper is not always better. The coverage may not be sufficient to cover your needs, exposing your business to potentially costly litigation.
It would help if you spoke to a professional insurance broker to determine the appropriate level of coverage for your circumstances.
Does the policy cover all your business activities?
Public liability insurance policies can be designed to suit various business needs. Most policies will cover a broad range of business activities, but there may be some exclusions. It is crucial to check the policy wording to ensure your business activities are adequately covered. If you are not keen, you risk leaving your business not fully covered, primarily if a claim occurs.