Public liability insurance provides coverage for claims made against your business by third parties for bodily injury or property damage. It protects your business if someone is injured or their property is damaged because of your business activities or operations.
Here are some key points about public liability insurance:
- Coverage: Public liability insurance typically covers legal costs, compensation payments, and other expenses associated with claims made against your business by third parties. This can include medical expenses, legal fees, and settlement costs.
- Who it Covers: Public liability insurance covers claims made by third parties, such as customers, clients, suppliers, or members of the public who are not employees of your business. It does not cover claims made by your employees, for which you may need employers’ liability insurance.
- Examples of Coverage: Examples of situations where public liability insurance may provide coverage include:
- A customer slips and falls in your store, resulting in injury.
- A contractor damages a customer’s property while working on their premises.
- A member of the public is injured by a falling object at your construction site.
- Limits and Exclusions: Public liability insurance policies have limits on the amount of coverage provided and may also have exclusions for certain types of claims, such as intentional acts or professional negligence. It’s important to review your policy carefully to understand what is covered and any limitations or exclusions.
- Legal Requirements: While public liability insurance is not typically a legal requirement for all businesses, it may be required by certain clients or contracts, especially if your business operates in high-risk industries or regularly interacts with the public.
- Cost: The cost of public liability insurance varies depending on factors such as the size and nature of your business, the level of coverage you need, and your claims history. Premiums are typically based on factors such as turnover, number of employees, and industry risk.
Overall, public liability insurance is an important type of coverage that can help protect your business from financial losses resulting from claims made by third parties for bodily injury or property damage. It provides peace of mind knowing that your business is protected in the event of unforeseen accidents or incidents.
