If you own a business or you’re self-employed, you need an insurance cover that protects you from members of the public. Public liability insurance (PLI) may be the best solution to cover certain risks that are encountered in places of work.
What is Public Liability Insurance?
Public liability insurance is an insurance product that covers the cost of claims made by members of the public on your business or company. It is an insurance business for business owners. If your business faces legal charges, public liability insurance covers the cost of the legal process. It also includes compensation and settlement that might be incurred.
If someone, customer, client or member of the public is injured while in your premises or as a result of business activities, public liability insurance protects you.
Why do businesses need PLI?
If you operate a kind of business that comes in contact with people regularly, you should get PLI. Your work, workplaces or workers could cause injury or damage to someone. The following tips could help you identify why you need public liability insurance.
- If customers visit your business regularly.
- If you work at clients businesses or homes such as a contractor
- If you work in public such as an engineer or a builder
- If you’re prone to legal cases
What Public Liability Insurance covers?
Part of the coverage PLI protects a business from are:
Bodily injury: PLI protects the possibility of someone being injured on your business property. Accidents happen, and you never can tell when a customer may suffer a bodily injury on your property. PLI will cover the costs of the medical bills that such customers may incur.
Property Damage: Part of what PLI covers include the damages to someone’s property while they are on your property. It also protects property damage while you’re doing your work. For example, if a plumbing company fixing a client’s tap damages something while working, the cost for the damage would be covered.
Legal Expenses: When legal issues arise against your business, the cost of hiring a lawyer is covered under the PLI.
What doesn’t PLI cover?
Public liability insurance doesn’t cover all your business insurance needs. An injury to you, or your employees, or damage to your property isn’t covered by public liability insurance. It doesn’t cover your business if you’re sued by an employee. Other business insurance products such as general business insurance and employer’s liability insurance provide cover for such situations.
While there are no known laws that mandate PLI, you might regret not having one for your business. If your business gets sued and you do not have public liability insurance, you’ll have to pay for a lawyer yourself. If there is also a claim against you, and you have to pay settlements, you’ll have to cover the legal fees involved.
Public liability insurance is intended to cover businesses that come into contact with the public on a regular basis. If you interact less with the public, you’ll be needing a lower amount of protection compared to a business with regular contact with the public. The level of protection you need will depend on your business. However, the chances of your business being sued are high, you should consider getting protection for your business.