Let’s start with the obvious question:
What Is Public Liability Insurance?
Public liability insurance is a type of insurance taken for a business, to cover the cost of claims usually made by the public, and that happens in connection with the activities of the business.
It helps cover the costs incurred from:
Any personal injuries.
Damage or loss of property
Death
But you should note that the public liability only covers for incidents occurring within the business property. So, if an incident occurs away from the business property you won’t be covered.
How Does Public Liability Insurance Work?
Normally, businesses deal with the public, as their customers. As they interact with the public some risks could occur. Your business may end up with a lawsuit to deal with.
At this point, the policy comes in. Whenever an individual encounters an accident and proceeds to file a lawsuit against your business, you’ll file a claim with your insurance company if the reason is covered by your policy. Depending on the limits of the policy, your insurance company will help cover the legal costs as well as pay for the damages.
What’s Covered By The Public Liability Insurance Cover?
Let’s see what’s covered by the public liability insurance cover:
Any form of body injury: Public liability insurance covers the costs of paying for injuries.
Damage to property: Any damage to a third party’s property is covered by this insurance.
Legal Fees and expenses: The public liability insurance coverage also includes the cost of hiring as well as paying an attorney to represent your business in case a lawsuit is brought by a customer.
It’s worth noting that this coverage is only limited to your business property. So if you or even your employees engage with customers elsewhere, for example at their houses, the public liability cover may not help a lot. For more information on what’s covered and what’s not it would be best to consolidate with a broker fundamentalinsurancebrokers.com.au/public-liability-insurance
Will You Need Public Liability Insurance?
Here’s is a question you’re probably facing – do I need public liability insurance? Well, this depends on the specific needs of your business as well as the location of your business premises. This type of insurance policy has a lot of limitations, meaning it may not provide enough coverage. But it’s usually affordable.
As a requirement by the Federal law, businesses need to have employees’ compensation, disability as well as unemployment insurance. Though liability insurance is not necessary, businesses should have a type of liability insurance.
And since the public liability insurance comes with a couple of limitations, many businesses may consider an alternative.
What Are The Alternatives To Public Liability Insurance?
The general liability insurance usually covers all that the public liability insurance covers. Besides, it covers personal as well as any advertising injury. Advertising injuring happens a business has been sued for any false or misleading advertisements. General liability insurance is usually more comprehensive, and that’s why it’s a convenient and better choice for most businesses.
Product liability insurance and professional liability insurance are other covers businesses may feel like considering. When it comes to product liability insurance, it covers any claims as a result of defective products. On the other hand, the professional liability insurance protects against any claim as a result of loss due to negligence or professional mistakes.
We’ve seen that general liability insurance is the most suitable one compared to public liability since it’s more comprehensive. However, a business may need to purchase different types of liability insurance for wider coverage.