What is Public liability insurance?

Public liability insurance – The concept of insurance itself is found to take responsibility for certain loses, damages or pains caused, suffered as a result of actions or occurrences that may or may not be deliberate as measured by certain factors guiding against such claim.

In essence, insurance policy embodies a contract which subsists between you and your insurance company on the basis wherein you will be indemnified for eventual lose suffered as a result of an unforeseen circumstance.

Given this, you are expected to pay a premium on monthly terms from which such consideration of indemnity will be duly considered on behalf of the insurance company by the underwriter.

Insurance policy may be considered to serve as a hedge against a risk of financial/material losses that may result from the damage to the insured or her property, or from liability for damage or injury caused to a third party by the insured.

Public liability insurance

Public liability insurance is an aspect of insurance business that deals or covers compensation payments which extends to legal cost if in a situation a member of the public sues your business for losses or injury caused them in event of carrying out your business operations.

This damage or injury could be directly on a member of the public or their properties as the case may be, when you have this insurance in place, your insurance company will indemnify such member of the public who could even be a customer, client, passerby or a supplier.

Illustration 1

Assuming a client comes to your office, parked his/her at the packing slot. Eventually your truck ran into such car and caused your client a damage, it’s duty bound on you to fix such car or order another one for the client depending on the extent of damage.

In this case, your public liability insurance coverage will take care of this if you have one in place.

Illustration 2

If a supplier arrived your business premises in an occasion where your cleaner had mobbed a wet floor and forgot to put a notice, per adventure such supplier falls down and sustains a broken limb. It’s duty bound on your insurance to take care of such injury.

Should you get a public liability insurance for your small business?

It’s important for business owners to protect themselves against being vulnerable since accident is such an unforeseen circumstance.

While liability insurance may not be a legal requirement for your business it can still helpful since your business interfaces with the public.

How much does a public liability insurance cost?

The cost of an insurance will depend largely on the type of business you operate and the insurance package you opt for alongside the level of coverage.

It’s imperative you should understand that businesses that are considered to be riskier as accessed by the underwriter have the tendency to be more expensive than their counterparts that are accessed to pose less risk to the public.

How about the employees, does it cover them?

The public liability insurance does not cover your employee, however, where it’s unavoidable you may be advised to get an “Employee liability insurance” to cover for compensation claims instituted by employees in even they suffer injury, property damage on the cause of discharging their duty or illness.

This insurance is considered for a third party, member of the public who could be a customer, client or a supplier.

What is public liability insurance certificate?

This is a legal document that enumerates and summarizes details of a public liability insurance policy, in the other hand it proves beyond reasonable doubts that your business has the necessary cover and rights.

There could be different level of coverage for different insurers.

The public liability insurance include but not limited to,

  • Who is rightly insured under the policy
  • The policy number
  • The insurance company
  • A business description of the insured and the activities that’ll be covered
  • The extent to which an injury, lose or damage will be indemnified
  • There are cover exclusions usually, which may deal with losses or damages sustained outside the province, state, or area of business operation etc.

3 comments on “What is Public liability insurance?

[…] a small business “Mc Don” wants to buy a public liability insurance coverage with Stan Insurance Company, the insurer is subject to ask the insured sensitive questions […]

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