What Is Public Liability Insurance Policy?

What Is Public Liability Insurance Policy

What Is Public Liability Insurance Policy?

Public liability insurance covers you for any claims that are made by the public in relation to your business activities.

Find out more about public liability insurance, including whether or not you require it and the alternatives.

What is Public Liability Insurance?

Public liability insurance covers personal injuries, property damage, death, and loss. Public liability covers only incidents that occur on your property. If an incident occurs elsewhere, you will not be covered.

What is Public Liability Insurance?

There are many risks involved in interacting with customers and businesses. Even if you have warning signs, a customer could slip on wet floors and end up in court.

You can file a claim with the insurance company if someone files a suit against your business because of a reason that is covered under your policy. Your insurance company will pay for your legal fees and damages up to the policy limits.

What does Public Liability Insurance cover?

The following are covered by public liability insurance:

  • Bodily Injury: Public liability insurance covers injuries.
  • Property Damage: This helps to protect property belonging to third parties. Imagine that you run a convenience store and your employee spills coffee on the designer purse of a customer. Your policy may cover the replacement cost and damage to the purse.
  • Legal expenses: This policy also covers the costs of hiring an attorney to represent you in a lawsuit brought forward by a customer.

This coverage does not apply to your business property. Public liability coverage might not be sufficient if you or your employees have contact with clients in other places, such as their homes.

Also read: Why Do Your Business Need Indemnity Insurance

What is public liability insurance?

It depends on the location of your business and its needs whether you require public liability insurance. This policy is less comprehensive than other types of business insurance. However, it’s cheaper and provides less coverage.

Workers’ compensation, unemployment, and disability insurance are all required by federal law for businesses that employ workers. However, most businesses should have some form of liability insurance. Business owners might consider purchasing an alternative to public liability insurance due to the limitations.

Alternatives to Public Liability Insurance

General Liability Insurance Covers all public liability insurance. It also covers advertising and personal injury. Advertising injury is when a company is sued for misleading or false advertising. General liability insurance is a better option for most businesses. It is more comprehensive and is easier to find. This coverage is rare in the US and is equivalent to general liability in the UK.

Professional liability insurance and product liability insurance are also options for businesses. Professional liability insurance and product liability coverage can protect your business from claims arising from defective products. Professional liability insurance covers you against financial losses resulting from professional mistakes or negligence. Malpractice insurance can be considered professional liability insurance.

Key Takeaways

Public liability insurance covers you for any claims that are made by the public in relation to your business.
It covers personal injuries, property loss, or death.

General liability insurance is preferred by businesses over public liability insurance because it offers more coverage. Businesses may also wish to purchase additional types of liability insurance, such as professional or product liability coverage.

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