What You Should Know About Public Liability Insurance

A claim against you could be prompted by anything, such as an outdated doormat, a shaky window pane, or an incorrect website.

A skilled ii-a risk adviser may combine all of your obligations into a single, reasonably priced policy that addresses the risks you encounter from third parties. You can get more thorough coverage without having to spend more by doing this.  

What is public liability insurance?

Public liability insurance is a type of commercial insurance that pays claims made by members of the public for medical bills and other expenditures incurred as a result of accidents, fatalities, and property damage involving your company. The general public consists of clients, guests, and delivery workers.

Commercial general liability insurance covers public liability protection. It comes in a package known as a business owner’s policy (BOP) along with commercial property insurance.

This type of insurance, which covers third-party accidents on your business property specifically, is also known as premises liability insurance.

What is covered under public liability insurance?

Insurance against third-party injuries and property damage claims that are linked to your company is known as public liability insurance. This covers events that occur at your place of business and places that are associated with your work, like a client’s house.

In the event that a patron or member of the public sustains injuries on your property, your policy will pay for medical expenses, property damage, and legal fees for any ensuing litigation, up to the policy limits and after you’ve paid your deductible.

When visiting a customer’s property, incidents that you or an employee causes would also be covered by this kind of insurance.

Damages or injuries to you, your company, or your staff are not covered by public liability insurance.

When is public liability insurance necessary?

Public liability insurance, which is now available as general liability insurance, is something that every business that deals with clients, customers, and other members of the public should think about.

If a customer is hurt in a slip-and-fall accident at work, or if you or a staff member damages a customer’s property, it may result in high medical expenses, costly repairs, or even legal action.

Having public liability insurance is crucial for companies that interact with the public on a regular basis, whether it be at your place of business, a client’s place of business, or a person’s home. For musicians and other performers who play in front of an audience, it’s also crucial.

You would still benefit from this coverage even if your business is conducted online because receiving delivery or picking up goods involves interaction with people.

What other types of business insurance do you need?

Your small business is not completely protected by public liability insurance; in fact, your insurer is unlikely to offer you this coverage on its own.

Almost all business types require general liability insurance coverage at the very least. Your general liability policy will also cover advertising injury, and the premises liability section of this policy will defend you and pay legal fees against the majority of typical third-party claims.

Better still, choose a company owner’s policy that discounts the combination of general liability and business property coverage.

You ought to think about additional company insurance options:

  • Workers’ compensation insurance is required by most states for businesses with employees. It covers the cost of work-related injuries.
  • Professional liability insurance (also called errors and omission insurance or E&O) covers claims of financial loss from professional errors or negligence.
  • Cyber insurance helps pay for costs following a data breach or cyberattack that affects you or a client.

You may also consider more about professional indemnity insurance, and other types of insurance which could help you establish a more secure future for yourself and for your business.