Spearheading a business involves juggling different critical responsibilities, but some aspects are easier to overlook as most companies focus on generating profit for the long term. On that note, understanding and getting a Public Liability Insurance may not be on a company's immediate priority list, but it plays a pivotal role in protecting your business against possible liability claims down the line.
For a business, whether start-up or established, it is imperative to protect assets and make deductions for the safety of workers and the public. As a result, many companies take out Public Liability Insurance to protect their interests and assets against compensation claims if someone were to get injured or be affected by an accident on their premises.
Public Liability Insurance is an insurance policy that covers the company's liability for physical injury or property damage, which an insured person may suffer due to an accident occurring on the premises, or through contact with any object or substance on the premises which is within the control of the insured person.
To that end, the purpose of a Public Liability Insurance is to provide protection from claims made against a business if it causes the following:
- Injury, or death of a third party;
- Damage or loss to a third party's property;
- Emotional or mental distress;
Settlement claims are those made against a company, which occurs when a third party sustains any form of damage or loss to his, her or properties.
This refers to the costs incurred when a company is under investigation by an insurance company to determine if defence against the third party's claim is required.
Property costs are incurred when a company needs to pay for the repair or replacement of any damaged property that was damaged within their premises or by an object or substance within their control.
Most serious claims are generally brought against the company and not its employees. However, where an employee is found to be negligent or liable for the damages in question, a Public Liability Insurance can safeguard the company against any claims brought against the employee.
The worst-case scenarios to be covered are injuries to your staff or customers on your premises. This can play a crucial role in your decision to take out Public Liability Insurance.
Not all damages are covered by the Public Liability Insurance, so it's important to know what it can't help you with, such as claims involving asbestos exposure, workers' injuries, punitive damages, and penalties due to illegal activities.
Since its inception, the insurance industry has been providing individuals, families, businesses and communities with a means to protect assets and interests in the event of any unforeseen circumstances. The idea behind the Public Liability Insurance is to set aside some funds for damages and expenses in case a third party is affected in any way.
If a third party is injured or suffers any form of damage on your premises, a Public Liability Insurance could help cover the cost of any damages or losses to the extent of the level of cover that you have chosen. So, the next time you're looking for means to safeguard your business, Public Liability Insurance can be one of the best ways you can choose to do so.
Ensura is a team of excellent general insurance brokers with a simple mission: to help people get the right insurance at the right price. Get in touch with us and explore our risk management solutions, so you can gain peace of mind without burning holes in your pockets.
Disclaimer: As with any insurance, the cover will be subject to the terms, conditions, and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
