It is a fact of life that accidents happen. Sometimes it is nobody’s fault but much of the time, the finger of blame can be pointed and someone must take responsibility for what went wrong. When this happens to a business, there is an insurance policy that can be taken out called public liability insurance.
What is it?
Public liability insurance is a policy that protects businesses if they are being sued by a third party.
You would be liable for claims in damages if any injury to a member of the public were caused by you or your business. This also counts for property. Public liability insurance would cover the costs and expenses such as any hospital fees or any other legal fees related to the incident.
How much does it cost?
The cost of this policy does vary from business to business. It depends on the turnover for the business, the size and the type of business.
The companies which own large premises where the public can come in and out at their own leisure are at the highest risk of public liability. These types of places include pubs, theatres, clubs, shopping centres, hotels, resorts and sporting venues. It’s worth noting that a claim is still potentially liable even when alcohol is involved.
Companies can seek advice on how to get public liability insurance as well as other types of insurance by making contract with an insurance broker. A broker works as a type of agent and sources out all types of insurance on behalf of the companies it represents.
Is it compulsory?
Countries across the world consider public liability insurance compulsory for companies that generally have a higher risk of being sued by third parties. The most common cause of these third parties suing for damages in these cases is negligence. This policy is used to cover drivers of vehicles such as taxis, those who manufacture and distribute products that may be harmful to the public and those who offer professional services to the public.
The main reason that the policy has been made compulsory for these companies is because they are deliberately engaging in an activity and service that has the potential to cause injury or loss to members of the public. It ensures that – should an accident occur – public liability insurance will provide that money is available to pay the compensation.
The author of this article is a part of a digital blogging team who work with brands like Gladiator Insurance. The content contained in this article is for information purposes only and should not be used to make any financial decisions.
