Public liability insurance is a type of insurance that covers the costs associated with your business becoming legally liable to pay for losses or damages. It’s a good idea to get this type of insurance, but you probably have some questions about it. In this article, we’ll go over what public liability insurance is and why it’s important for your business. We’ll also cover what public liability does (and doesn’t) cover so you know if it’s right for you.
What is public liability insurance?
Public liability insurance (or PLI) is an insurance policy that protects you against claims of negligence. It covers damage to property, and injury or death to people.
PLI is a legal requirement for many businesses, especially those who work with the public in any capacity at all. It can be purchased as part of a business insurance policy or separately.
Why do you need it?
Public liability insurance protects you, the business owner, from being held responsible for injuries to individuals who are injured on your property or premises. It also provides protection if someone is injured by your products.
For example:
- A customer slips on the floor of your shop and breaks their leg.
- Someone buys one of your cakes at a market stall and has an allergic reaction to it that causes their throat to swell up and they need medical attention.
What does it cover?
Public liability insurance can protect your business and ensure that you’re covered in the event of an accident or injury. In addition to protecting you, it also covers:
- You, your employees, and any contractors you use. Even if they are not working on your premises at the time of an accident, public liability insurance will cover them too. This is useful for businesses that regularly hire external contractors for tasks such as maintenance work or cleaning services.
- Anyone who comes onto your premises including customers and their families or friends who are visiting them while they are shopping there (but not if they have been invited by someone else). If a customer trips over something on your premises that wasn’t there before he visited, then this would be covered by public liability insurance as well as any other incidents where someone was injured after being invited into one of your shops or workplaces.
- Products sold through websites or other means rather than just face-to-face sales where people can touch them before buying them off shelves’ etcetera should be covered too so long as they don’t fall under product liability instead (which may require separate coverage). Public liability covers all products produced by companies not just those sold directly from stores owned by those companies themselves. Product Liability Insurance is for companies whose products are bad or dangerous. A good example of this would be a car manufacturer who sells faulty vehicles that cause accidents or injuries. Learn more about product liability here:
How it protects you and your customers
Public liability insurance protects you from claims of negligence. It also helps to protect your customers from injury by covering the costs related to any damage they might suffer on your premises or during a service provided by you (e.g., if a customer slips and falls, public liability insurance would cover their medical bills).
Public liability insurance can be used as evidence that you were not negligent in the event of an injury, helping to ensure that your business is not sued for damages or accused of wrongdoing. In addition, it protects against any loss of profit or reputation should such an incident occur; both financial losses and reputational damage are covered under this type of policy.
How much public liability do you need?
Public liability is a legal requirement, and you must have it if your business is open to the public.
You need a public liability insurance policy if:
- You run a restaurant or cafe
- You sell products to the public, like clothes or snacks
- Your business is open to the public, such as an office building, hotel or tourist attraction
- If your business is open to the public, you are legally required to have a public liability insurance policy. This will protect you from claims made by members of the public who suffer injury or property damage during their visit.
Different types and sizes of business will require different public liability insurance policies. Speak to one of our brokers at Tradies365 to get a quote on how much public liability insurance you may need.
Public liability insurance won’t cover everything, but it will help with many potential issues.
Public liability insurance won’t cover everything, but it will help with many potential issues. It’s a good idea for any small business owner to get public liability insurance because it protects you and your customers if something goes wrong.
If you cause injury or damage to someone’s property, public liability insurance will cover you financially, up to a certain amount. If someone sues you because of an accident that was your fault, public liability insurance will help pay for legal fees.
We recommend speaking to one of our brokers at Tradies365 about your options in more detail. If you have any questions about public liability insurance, please contact us.