All businesses, regardless of their nature or size, accidents can happen no matter how cautious an entrepreneur may be. Public liability (PL) or personal indemnity (PI) insurance protects your company from third-party claims of property damage or personal injury. That’s if an accident happened in your firm or due to your enterprise’s activities on their premises.
What Public Liability Insurance Covers
Public liability insurance will only cover claims made by third parties. This means customers, suppliers, or any member of the public. Below are some accidents it can cover:
- Food Poisoning – If you run a restaurant, and a customer gets food poisoning from what they eat in your shop, then your business would be liable for damages and medical reimbursements.
- Property Damage – If you are in the construction industry or if you run a repair and installation company that would require you to enter a client’s property, then public liability insurance can cover any damage that your employees caused while performing their work.
- Death – Accidental deaths that occur on the premises of your business may also be covered by public liability insurance.
- Slips And Falls – Slips and falls can also occur in commercial properties, and as the owner, you could be liable for damages.
- Damaged Belongings – If your business frequently accepts clients and guests within the premises, public liability insurance can cover any damages that may happen to their properties during their visit.
As seen, accidents involving third parties can happen in different ways. Therefore, you must consider having public liability insurance despite the size or nature of your firm. That said, if you need PI PL insurance for IT contractors or any other business type, look for a reliable and reputable insurer that has been around for a long time.
Benefits Of Having Public Liability Insurance
As mentioned, public liability insurance covers your enterprise from unexpected third-party accidents resulting in death, injuries, or property damage. You’ve also seen that you need it if your firm is open for members of the public, if suppliers or clients come to your business premises, or if you go to customers’ properties.
This article will further convince you if you’re still unsure if public liability insurance is necessary. Below are other essential reasons to have this cover:
Protects Your Image
A lawsuit can negatively impact your company’s image. If your case is made public, some clients, investors, suppliers, and other business partners may stop working with you if they think you’re in the wrong. Your reputation could be damaged further if you have no money to compensate an injured party. Some people can view this as arrogance; thus, they may not want to work with you again.
Public liability insurance can prevent this harsh consequence. Since it enables you to pay injured parties, it can protect your good image. If bloggers, competitors, or other malicious people slandered your company, this insurance cover will protect or help you repair your reputation. By compensating the injured party, people can see that your company had no ill will against the complainants.
Prevents Financial Loss
Public liability insurance can help prevent financial loss if an external party sues you for property damage, a personal injury, or the death of a loved one. In this case, a successful claim can negatively affect your enterprise’s finances.
For instance, if a customer got food poisoning from your restaurant, they could request compensation for hospital bills and medications. They can also sue for legal damages and lost wages because of their inability to work for a certain period. Besides that, since you also have to hire an attorney to defend yourself, you’ll also need money to pay attorney’s fees.
Without public liability insurance, compensating an injured party and paying your attorney can significantly cost you. You might have to temporarily close down if your business can’t pay such amounts. Alternatively, you could be forced to sell a part of it or some assets. However, with a public liability cover, your business won’t experience financial strain. Your insurer will pay compensation, attorney’s fees, and other costs related to the suit.
Ensures The Continuity Of Business
A third-party claim can slow down or halt your business processes. They’ll sue you if you can’t solve the issue outside the court. In most cases, lawsuits take a while to finalize. In this case, attorney fees and other costs related to your suit can financially drain your business. This can threaten the operations and continuity of your business.
As mentioned, public liability insurance covers costs related to your lawsuit, reducing financial strain risk. As a result, your business operations will continue smoothly despite the suit.
Public liability insurance is essential for your company regardless of the nature or size of your business. The cover protects your enterprise from claims of personal injury and property damage raised by third parties.
As discussed above, you should have this cover because it protects your reputation, prevents financial loss, and ensures business continuity if a third party sues you. So, if you don’t have public liability insurance yet, get it as soon as possible because accidents are unpredictable.