What is Public Liability Insurance?

If you’re planning to get business insurance, you should consider having public liability insurance. Public Liability Insurance is a plan where it protects your business if in case the public files a lawsuit or brings the company to court.


By definition, public liability insurance refers to the type of business insurance that covers the cost of loss, damage to property, or accidents connected to your business. If anything happens outside the business premises, the insurance will not be liable for financial assistance.


How does Public Liability Insurance work?


Many businesses interact with the public. The business then is exposed to different possibilities. A customer may get into unexpected incidents and get themselves hurt even if there are warning signs such as “slippery” or “sharp objects.” Without noticing it, a lawsuit may slip out of your hand.


If a customer files a lawsuit against the business, you can file a claim to your insurance company. Your insurance company will help you by covering the legal cost and other damages as it is in your policy.


What’s the coverage of Public Liability Insurance?


Normally, Public Liability Insurance covers bodily injury, property damage, and legal expenses.

Most insurance covers bodily injury or the medical expenses of someone who got hurt.


Property damages are covered as well. Third-party property is included as well, depending on your policy. For instance, you own a restaurant. Your employee accidentally spilled a coffee on your customer’s expensive shoe. Your insurance plan can help you to cover the cost of the damaged property.


If the customer files for a lawsuit, public liability insurance can also help you with legal expenses such as hiring and paying an attorney to represent you in court.


How much Public Liability Insurance cost?


There are different factors considered when it comes to the cost of public liability insurance. Business size and level of risk are one of the factors to determine the price range of your insurance plan.


Some insurance companies take into note your scale of contracts and claims history. You can click here to compare public liability insurance at QuoteRadar to know more about insurance cost and their coverage.


What’s not included?


Public liability insurance does not include anything related to you or your employees. General liability insurance usually covers such incidents.


If your business is sued by one of our employees, the insurance company will not pay for your legal fees. That is covered by Employees Liability Insurance, which is required by the government if you have more than one employee.


Remember, public liability insurance is not for employee-related issues. Public liability insurance is agreed to save you from third-party claims from a customer or a client.


Do I need Public Liability Insurance?


The government doesn’t require all businesses to have public liability insurance. However, having one can save you from unexpected incidents.


Public liability insurance is highly recommended specifically for those types of businesses that interact with the public daily.


Facing legal actions may cause too much for your business. That’s why it’s necessary to secure public liability insurance before interacting with the public.


TBN Editor

Time Business News Editor Team