Insurance companies sell policies that offer financial protection for the policyholder when specific events occur. The policies pay benefits or cover costs the policyholder would otherwise pay for out of pocket.
While most people are familiar with homeowners, car, and life insurance, those are just a few of the multiple types of insurance policies sold. Some people may also need key person insurance, income protection insurance, or public liability insurance. Understand each type of insurance offered and determining whether you need it can be time-consuming and frustrating. Let’s look at public liability insurance, what it is, how to obtain liability coverage, who needs liability insurance, and whether you need other types of liability insurance.
What is public liability insurance?
Public liability insurance protects businesses that deal with the public. People entering your business may be injured, which could lead to a lawsuit. Suppose a person slipped on a wet floor. Your business may be liable for bodily injury.
Public liability insurance also protects large and small businesses if someone’s property’s stolen or damaged while they’re at your business. Suppose an individual in your store sets their bag on a bench with wet paint. They may sue for property damage if their bag’s ruined.
Policyholders with public liability insurance won’t incur the direct costs from lawsuits stemming from incidents occurring on their business premises. Their insurance covers the costs of bodily injury, property damage, loss of property, and legal fees.
How can you obtain liability coverage?
An insurance comparison tool simplifies the process of finding public liability insurance coverage. You can access a liability insurance comparison tool online. Users must enter their profession and critical business information, including the number of employees working for your business, your postcode, and your company’s annual revenue. The tool presents various options, enabling you to add management, cyber, or professional liability insurance. The tool uses your information to identify insurance companies offering policies that may suit your needs. You can review your options and compare the policy terms and costs, ensuring you choose the best liability policy for your needs.
Who needs liability insurance?
Business owners should have liability insurance, mainly if they interact with the general public in their business facilities. Individuals may not need public liability coverage unless they run a business from home, but they may need general liability insurance. General liability insurance covers costs associated with lawsuits stemming from injuries occurring on their property. Suppose you haven’t put salt down and someone slips on an icy sidewalk when making a delivery to your door. Your general liability policy covers your legal fees and settlement costs if the injured party decides to sue.
Are there other types of liability insurance you may need?
Public liability insurance is restricted to incidents occurring on your business property. Suppose you run a flower delivery business and your employees interact with the general public in public places or other locations, such as people’s homes. Public liability insurance wouldn’t cover lawsuits stemming from an incident at a client’s property. Business owners may need general liability insurance to expand their coverage, ensuring their business is protected from legal issues stemming from incidents in different locations.
Business owners may also need cyber liability coverage. Cyber liability policies cover the cost of malware attacks and data breaches. Cybercrimes are on the rise, and a cyber attack can cost millions to resolve. Business owners may need first-party cyber coverage, which covers business expenses related to the attack. Business owners may also need third-party cyber coverage, which pays for lawsuit costs if the cyber attack prompts a client to file a lawsuit against the business.
Businesses need multiple types of insurance, including public liability policies. Homeowners may need general liability insurance.
