What Is Public Liability Insurance?
Public liability insurance is a policy that provides insurance to the business against harm to the customers or a third party while on the business estate.
The loss may be either monetary or physical injury.
This is a very important insurance policy that protects the interests of all those businesses whose gates are open to the general public.
The premiums of the public liability insurance are low and affordable for the business.
When compared to the loss that the company or the business will have to bear in cases of physical or monetary injury to the customer, the premiums are very low.
Public liability insurance is a protection cover for the business.
In the businesses where there is regular public movement in the business premises, there is a chance of danger, especially when there is machinery involved.
The risk of injury cannot be eliminated in shopping centers and stores, where the customer may stumble over things or products in display may fall over a customer.
In such cases, having public insurance will save a lot of trouble for the businessman.
Damage to customer property and theft of customer property is also covered under this insurance.
Business premises do not mean only closed enclosures.
Businesses involved in outdoor business and field works can take a public liability policy to cover the dangers on the field.
For example, a person walking by a construction site can hurt himself by stumbling over construction material.
Other examples of field jobs where a public insurance policy comes in handy are outdoor photo or film shoots, surveys and road works.
In fact, public liability policy is more necessary while on the field than while indoors.
The insurance policy covers the expenses incurred in legal claims and proceedings if a customer sues a policy holder.
Another detail that the insurance covers is loss of property or physical injury to the business personnel while in the premises of the clients.
For example, the company personnel who go to the client premises to deliver goods many meet with accidents while on the client premises.
This policy is useful for all businesses like wholesalers and retailers.
Although a lot of businesses ignore public liability policy, it is a very handy thing to have in times of need.
What are the loopholes in the policy? Public liability policy covers claims from the customers or the third party only.
It does not cover claims from the employees of the business.
The businessman will have to take an employee liability policy to cover such claims.
Since you are the owner of the business, you are responsible for any damage that may happen to one of your employees.
Employee liability insurance is a compulsory requirement for a business.
Intentional damage to the property of a customer or to the customer himself is not covered under this policy.
The policy amount can vary depending on the business.
While in some businesses, the risk of public injury is greater, in other businesses, the risk in almost nil.
So, the policy cover should take into consideration the risk factor involved, size of the customer base and also the type of business.
The public liability policy also covers death of a customer or a third party on the premises.
In cases of natural death, no insurance cover is required.
Although public liability insurance is an optional insurance and depends on the employer or the businessman, it is always in the best interests of the business to have a public liability insurance so get through minor hiccups without much monetary loss.
The loss may be either monetary or physical injury.
This is a very important insurance policy that protects the interests of all those businesses whose gates are open to the general public.
The premiums of the public liability insurance are low and affordable for the business.
When compared to the loss that the company or the business will have to bear in cases of physical or monetary injury to the customer, the premiums are very low.
Public liability insurance is a protection cover for the business.
In the businesses where there is regular public movement in the business premises, there is a chance of danger, especially when there is machinery involved.
The risk of injury cannot be eliminated in shopping centers and stores, where the customer may stumble over things or products in display may fall over a customer.
In such cases, having public insurance will save a lot of trouble for the businessman.
Damage to customer property and theft of customer property is also covered under this insurance.
Business premises do not mean only closed enclosures.
Businesses involved in outdoor business and field works can take a public liability policy to cover the dangers on the field.
For example, a person walking by a construction site can hurt himself by stumbling over construction material.
Other examples of field jobs where a public insurance policy comes in handy are outdoor photo or film shoots, surveys and road works.
In fact, public liability policy is more necessary while on the field than while indoors.
The insurance policy covers the expenses incurred in legal claims and proceedings if a customer sues a policy holder.
Another detail that the insurance covers is loss of property or physical injury to the business personnel while in the premises of the clients.
For example, the company personnel who go to the client premises to deliver goods many meet with accidents while on the client premises.
This policy is useful for all businesses like wholesalers and retailers.
Although a lot of businesses ignore public liability policy, it is a very handy thing to have in times of need.
What are the loopholes in the policy? Public liability policy covers claims from the customers or the third party only.
It does not cover claims from the employees of the business.
The businessman will have to take an employee liability policy to cover such claims.
Since you are the owner of the business, you are responsible for any damage that may happen to one of your employees.
Employee liability insurance is a compulsory requirement for a business.
Intentional damage to the property of a customer or to the customer himself is not covered under this policy.
The policy amount can vary depending on the business.
While in some businesses, the risk of public injury is greater, in other businesses, the risk in almost nil.
So, the policy cover should take into consideration the risk factor involved, size of the customer base and also the type of business.
The public liability policy also covers death of a customer or a third party on the premises.
In cases of natural death, no insurance cover is required.
Although public liability insurance is an optional insurance and depends on the employer or the businessman, it is always in the best interests of the business to have a public liability insurance so get through minor hiccups without much monetary loss.