All You Need To Know About Public Liability Insurance
Does your business have public liability insurance coverage? It is a cover that protects your business from third-party injury and property compensation claims. Below is a guide on how public liability insurance works and the considerations to make when taking a public liability insurance cover.
How Does Public Liability Insurance Work?
If a customer walks into your business premises and trips over a slippery surface, suffers a fracture and damages their laptop, the aggrieved party could sue the business for personal injury and property damage. This is where public liability insurance comes to play. The insurance company covers your legal expenses and pays the injured parties. It is important to note that public liability insurance only covers third parties. The business owner and employees are not covered by the policy.
Who Needs Public Liability Insurance?
Public liability insurance is vital if your business regularly interacts with the public. For instance, if customers or suppliers visit your business premises. Contractors also require the cover since members of the public could get injured as the contractor works. However, you may not need the cover if you run an online business.
Taking Public Liability Insurance
Consider the following when taking a public liability cover:
Determine The Required Coverage
Most insurance agents can approximate the amount of cover that your business needs. However, industry regulations and professional organisations could compel you to take a specified coverage. For instance, it is not uncommon for contractor associations to ask members to have a particular amount of coverage.
Reduce Business Risks
Insurance companies calculate premiums based on the size of your business and the risks that third parties are exposed to. Creating a safe workplace environment is a sure way to reduce your annual premiums. For instance, a contractor could install safety nets to prevent debris from damaging nearby buildings and vehicles.
Work With An Experienced Insurer
Consider insurers that specialise in your industry. It is a guarantee that they understand statutory regulations and your diverse business needs. Assess the terms and conditions of the insurance cover. For example, what type of accidents does the insurance cover? What documents do you need when filing claims? How long will the company take to investigate the claim and offer compensation? Remember to negotiate the annual premiums.
You now have a comprehensive understanding of public liability insurance. Determine the required coverage, reduce business risks and work with an experienced insurer.