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Everybody wants to build more on assets and minimize on liabilities. However, your most valued asset may become a liability and result into shedding big bucks from your pocket. That makes having a Public liability Insurance indispensable. Public Liability Insurance guards you against any claims charged by any third party for any damages to their property or any injuries occurring on them when at your premises or due to your premises. Read more
What exactly is Public Liability Insurance?
You own a business and if any of your clients or customers visiting your business premises get hurt or injured at your place, you may get sued for that. Even if you own a home based business, this might happen. Not only this, even at your home, say some loose article falls on the car of a visitor or somebody gets hurt in any other way when visiting your premises, you have a chance to get sued. And the financial liabilities for that are generally quite high. To safeguard against this, Public Liability insurance provides the solution.
Public Liability Insurance provides fiscal cover to protect the policy holder (business or individual) from third party claims arising because of injury or death due to any accident at policy holder s premises. Also the damages occurring to the properties of third parties are covered. In addition to covering the cost of the damage incurred, a typical policy also includes the legal representation fees and expenses. The legal expenses may occur while defending the claims charged by the third party.
Before taking the insurance, the quotations by different service providers should be carefully checked. If we talk about the premium of the Public liability Insurance, this depends on many factors that include the type of business, type and amount of cover required by the business, level of business activity involved. The amount of cover required may depend on the type of business but a significant amount of savings can be made by a business by opting for the insurance. You need to decide how much cover you need and the associated premium costs. Say you own a general store and one of your customer falls at the store due to some loose materials around the store, the policy will cover any of the claims charged for the injuries sustained. Same is true for any other home based business or any big business.
The payment for the claim (if any) is given directly to the person who has suffered damages or injuries and not to the policy holder. A policy holder no doubt is protected by the insurance company against any claims filed against him. In some states however having a Public Liability Insurance is must for any business. Moreover, if not compulsory it is better to be safe than sorry and that’s why it becomes must for businesses which put customers in a possible risk.
Liability Insurance for Businesses – Some Information
There are many types of insurance and liability insurance is one of them. There are various types of liability insurance as well. Auto, business, personal, health, homeowners, etc are some of them. Liability insurance is known as umbrella insurance. Liability insurance protects individuals or entities from loss of property from lawsuits.
Take business liability insurance for example. If you are starting a new business then there are chances that something may go wrong. Even though you may know the business well you can never predict how things are going to turn out. If you make a mistake then the liability insurance will help you. It (liability insurance) should be a part of the planning stage of or business no matter what venture you are planning to undertake.
In the event that you or your business causes damage to individuals or property during the period of the insurance then you will be covered by the liability policy. The policy will pay the charges of damage to the concerned party.
This type of insurance is cheap when compared to other kinds of insurance policies. In the event of a case or such it pays the injured party. The good thing about this insurance is that the insurance company always acts in the favour of its client and there are no hidden fees or damages that are involved.
There are three types of liability insurance when it comes to businesses. These are –
- Public Liability Insurance
- Product Liability Insurance
- Employers Liability Insurance
Public Liability Insurance
Many companies find they need this kind of insurance in order to cover up the damages incurred due to visitors, trespassers, contractors and the general public who may be hurt while they are on the business premises. For example, a visitor may slip and fall on the wet floor of the premises and get injured. The insurance will cover the cost of such an occurrence. However, the insurance is paid only if the act or damage was unintentional.
Product Liability Insurance
This type of liability covers damages that may occur from the products or services marketed by a company. For example, it you may buy a damaged product and feel cheated. The product liability insurance covers this sort of situation. Having this kind of insurance cover is not mandatory but companies find it necessary to have it.
Employers Liability Insurance
This covers the eventuality of employees getting injured in the workplace or business premises. It is mandatory in many countries even if the employees are part time. The amount of insurance is calculated depending on the combined wages of the all employees.
Do You Really Need Public Liability Insurance?
Everybody wants to build more on assets and minimize on liabilities. However, your most valued asset may become a liability and result into shedding big bucks from your pocket. That makes having a Public liability Insurance indispensable. Public Liability Insurance guards you against any claims charged by any third party for any damages to their property or any injuries occurring on them when at your premises or due to your premises. Accidents might happen anytime and that may result into you getting sued by people. Public Liability arises when you become liable for any claims due to injuries/losses at your premises. 
Say you own a business and customer/ client get hurt or injured when visiting your business premises. Or else you are an electrician and while repairing the electricity switches at a client s home, by mistake you put wrong fuse and a short circuit happens, the client may sue you for the property losses incurred. The insurance becomes more important in professions/business involving more risks to the customers/clients. The amount of coverage varies as per your need. You need to decide how much coverage you need and if there are any special requirements/ things to be covered. Not only for businesses, it is also very important if you own a home. Any loose article falling from your home may cause an accident or a visitor may slip at the slippery surface in your home. This all comes for getting insured.
The premium costs associated with the insurance depends on the coverage amount, type of business and type of business activity. The premium cost of course pays off in case of any claims. You need to decide how much cover you need based on how much possible risk is associated with your business or any other premises. General public areas like theatres, hotels, sporting areas are generally more prone to accidents due to big number of visitors and thus need more coverage.
Not being insured may result into big losses and even some of your assets may run away paying off the claims and the legal expenses involved defending the claims. Public Liability insurance however takes care of the legal expenses also in addition to the claim expenses. The claim expenses are generally paid directly to the sufferer.
In today s economy, being insured when it comes to Public Liability is a must depending on how much risk you pose to the third party clients, customers or visitors.
Public Liability - Don t Leave Home without It!
Not only for small or big businesses, Public Liability insurance is a must for you if you are a home owner. This will protect you from any legal or medical claims arising due to someone getting injured by any accident at your premises. Say somebody falls on your property due to a slippery floor or something loose from your property may fall and hurt somebody or somebody s car; you are prone to getting sued for the claim. Even someone s property when located on your property if gets hurt also brings in the probability of claims. Public Liability Insurance becomes more important to safeguard against all this particularly for places with a high risk of accidents like theatres, hotels or sporting venues. These are the places which generally experience a huge number of people.
Although mandatory in some states, it is not so in many countries. But it is always advisable to be on the safer side. Accidents can happen anywhere, anytime and that may bring huge claims. No insurance might mean big losses in such circumstances and can eat up all your assets. Further, different amount of coverage and premium costs are offered by different providers. The premium costs may also vary from one insurer to another due to huge competition in the market. You need to decide how much cover you actually need for your home or if there is anything special that needs to be covered. The associated premium costs will pay off in case of any accident at your premises. Also the legal expenses and charges are covered under a typical policy.
Although the insurance protects you from any liabilities arising due to any damage at the premises, it is always a better idea to maintain the property to minimize any possible risks for visitors when on your property. In any case if it is proved that the damage occurred due to your negligence, you may not be eligible for the claim.
More or less, Public Liability Insurance is going to protect you in the case of you getting sued by any third party person due to any damage occurring to their property or any injuries happening to them while at your home. At the same time covering the legal expenses. Without it, you may at any time find yourself broke with your assets going away to pay the claims and the high legal fees. It is a must for the home you own and just don’t leave your home without it!