Public Liability Insurance – Why essential for businesses?

Accidents do happen, from time to time. Having public liability insurance in place helps set your mind at rest, keeping you covered if a customer or member of the public suffers a loss or injury because of your business.

What does public liability insurance cover?

A comprehensive public and product liability policy provides cover for claims of bodily injury or other physical injury, personal injury, advertising injury and property damage as a result of your products, premises, or operations. As a safeguard against liability, the policies allow you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. Liability policies also provide cover for the cost to defend and settle claims.

Here are some other things that typical liability policies may cover:

  • Personal and Advertising Injury – Protects against offences made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
  • Defence Costs – Provides cover for legal expenses for liability claims brought against your business, regardless of who is at fault.
  • Medical Expenses – Provides cover for medical expenses if someone is injured on your premises or by your products.
  • Premises and Operations Liability – Provides cover for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
  • Products Liability – Provides cover for bodily injury and property damage sustained by others as a result of your products.

 

Why is public liability insurance important?

Firstly, potential clients may ask to see your company’s insurance schedule and documentation before taking you on. Secondly, even when a business does everything right there is always the chance of an accident happening. Claims values have seen significant increases in recent years, causing many customers to consider the need for higher limits of indemnity to remain adequately insured. This is especially true for claims involving personal injury, where a recent change in the law has dramatically affected potential settlement values.

How much public liability insurance do I need?

The amount of cover that your business needs depends on three factors: perceived risk, where you operate your business and the type of products you manufacture.

Perceived Risk – Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more cover than another organisation that manufactures stuffed animals.

Type of Product Manufactured – If you manufacture a dangerous product, you may want to carry higher limits of liability.

To find out more about public liability insurance contact our experts at A-Plan.