What Is Public Liability Insurance? What is public liability insurance? Why do you need it? Not a lot of people--especially business people--understand the real essence of this coverage. However, if you can just get to know it, you'd realize that it's something indispensable. Public liability insurance is a form of business insurance that does two primary things. It protects your business should a customer suffer a fall or other form of injury on the premises of your business. And it protects these people and their property from any harm that your business may cause them. An example of this would be if you owned a business where your service is conducted on the clients premises. Public liability insurance is widely held by major corporations to protect themselves against ongoing legal and settlement claims. Unfortunately, many small businesses go without, risking their entire livelihood to save on premiums. The following is a more in depth look at this necessary form of business insurance protection. Defining Public Liability Insurance Also known as PLI, public liability insurance refers to several types of insurance policies that aim to protect business people, their businesses, and their employers from future claims from customers and clients. You can use the insurance coverage whenever someone gets injured or disfigured due to accident while in your office or in your home (if you're working in your own home) or during your business hours. Take this case, for example. You are opening a garment factory in your area, and you're inviting some officials to the establishment, hoping that you'll get some investments out of them. Suddenly, one of them suffered a slip-and-fall injury after having stepped on a drop of oil on the floor. If he or she files for an injury claim (which he or she may likely do), you can use your public liability insurance to cover for such claim. If you're self-employed, you can use the liability insurance to any damage you may incur to third-party property. Here's an illustration. You're a professional landscaping company hired by a client. While working on your project, you happen to knock down a portion of a wall. Your client can make you responsible for this. Rather than paying the expenses out of your own pockets or from your business coffers, you can rely on your PLI. The Benefits of Getting Public Liability Insurance There are a lot of reasons why you need to get public liability insurance for you and for your business. It's pretty obvious that it offers protection for your business from future indemnity claims that would perhaps lead to insolvency or bankruptcy. With the insurance policy, you won't have to use your profits, assets, and investments to pay claims from clients. As expected, they cannot compel you to use your business as payment for the injuries or damages they suffered. The insurance policy will also be able to cover a lot of different expenses. For example, you can use it to pay for legal fees and medical bills. You may also charge the property replacement to your PLI. There are even policies that would allow you to insure certain areas of your offices, such as parking lots or garages. You can also extend public liability insurance to your employees. This means that if they commit mistakes along the way and they are sued by your clients, they can have their own means of facing their legal obligation without fearing where they are going to get the money. Some Types of Public Liability Insurance There are a number of options for public liability insurance that you can choose from. For instance, if you're an owner of properties for rent, you may want to get the landlord insurance policy. If a tenant suffers from electrocution because of faulty wiring or he or she gets injured from a crumbling wall, you can use your insurance for his or her future legal claims and medical expenses. If you're offering services such as consultations based on your professional capabilities, you may acquire professional indemnity insurance. It will shield you from lawsuits such as slander, plagiarism, breach of contract, or professional neglect. A compulsory public insurance policy is the employers liability insurance. This one protects you from claims from your own employees. For example, if one of your construction workers met an accident during business operations, he or she can file an injury claim against your business. You can use your insurance policy to settle that one. How to Get Public Liability Insurance Perhaps by now you know that your business may require public liability insurance just for the added protection. Accidents may not really happen over the course of your enterprise's life, but who knows if it's going to be the other way around, right? That's why you have to start looking for PLI today. It's not going to be difficult, though, especially when you're given this one important tip: get some quotes. This is one of the best ways of finding the most ideal and affordable insurance policy providers for your business. The public liability insurance quotes will give you a good idea how much your policy would be worth and how much you'll be paying for it each month. There are a lot of things that are to be considered when asking for liability quotes. These include the nature of your business, annual turnover, and any previous claims against your business.
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