Public Liability Insurance: Protection for Your Business

Public liability insurance offers protection if a customer suffers any type of injury at your place of business, or through your products.  The insurance product is necessary for the business owner because a lawsuit and cause a tremendous strain on the company finances.

Overview of Liability Insurance

Liability insurance generally protects you from third-party claims of negligence.  These policies generally cover drivers of vehicles, professionals offering services to the public, manufacturers of products sold that could be harmful to the public, constructors, and those offering employment.  Many states make liability a mandatory business practice to protect both the business and the consumer alike.  For example, public policy requires drivers to carry insurance in the event that their activities cause a loss or damage.  In this case, there will be money available for compensation to the injured parties and the business will not suffer a direct monetary loss.

What Public Liability Offers

Public liability insurance protects your business, should your activities cause damage to the third party’s property or injury. The insurance will also reimburse you for any monies paid as legal charges, and while the court may or may not award any damages, legal fees can be expensive.

There is no such thing as a no-risk business.  As a business owner, you can’t afford to ignore risk factors or remove all risk from your business.  Therefore, compensation for injuries to your customers caused by your business is your legal obligation.  These cases can reach the million-dollar range, so do not take your insurance coverage lightly.  A public liability insurance policy will cover you in the worst of times, no matter how big the amount is.

Businesses with the greatest risk exposure of public liability are those who provide leisure activities for things such as sporting events, nightclubs and bars, hotels and resorts, theaters, etc.  With the consumption of alcohol in some of these venues, and especially with large crowds, the risk increases significantly.

However, any business can have someone trip and fall or get hurt on the premises of the business.  Assess your business to determine the amount of coverage your business requires and make the commitment to cover your assets.

Small Business and Public Liability Insurance

Many small business owners do not get general or professional liability insurance because of the high expensive premiums.  However, should an accident occur, the out-of-pocket legal fees may send the business to financial ruin or bankruptcy.  Small business owners should consider potential risks, when trying to decide whether liability insurance is necessary.  A cost-effective policy may be available for the business, even if full coverage is not available, partial coverage will help alleviate costs in the case of an accident.

Five Things You Will Need for a Quote

When looking at public liability insurance, know what it is you will need to get an accurate quote:

1. Occupation – the occupation(s) to be covered
2. Workers – a list of all employees
3. Trading – the date your company started trading
4. Experience – the years of experience for all directors, principals, partners
5. Indemnity – know the level you will need: 1, 2, or 5 million