Public liability insurance is one of the most important types of insurance you can buy. This type of insurance protects your business against claims made by your customers in case they suffer any injury or loss due to something that happened at your premises. Some common instances include slipping on a wet floor or tripping over an object left on the floor. It also covers claims for damage caused to their property. In addition, this type of coverage will protect your business from legal costs and compensation claims if one of your employees or customers suffers an injury.
For example, according to a recent report by the Small Business Administration Office of Advocacy of the US, around 47% of the workforce is employed under 32.5 million small businesses. These small businesses are hair salons, IT service firms, landscapers, lawyers, restaurants, etc. These small businesses must have public liability insurance because they cannot afford to pay any type of compensation or bear legal cost in case of accidents on their premises.
Here are some reasons why every business should have public liability insurance:
Ensuring the Safety of Visitors
Public liability ensures that your business is safe for visitors. It means that nothing happens to them while they are at your premises and interacting with your employees.
A slip, trip, or fall is enough to make an individual sue you in civil court if they are injured. If the injury results in death, then their family will be able to file a case against you too. These lawsuits become quite costly if they go all the way to trial. It can take years to resolve and sometimes even result in heavy compensation charges being laid against you by police.
Public liability insurance covers all these eventualities. It protects you and those who visit your office from legal liability claims due to someone getting injured on premises or at work-related activities. It also covers any damage caused by products sold within a business environment (e.g., a defective electronic device).
Covering Third-Party Claims
Public liability insurance covers you for any injury or damage that you or your employees cause to a third party. It also covers any damage to a third party's property, reputation, and business.
In the event of an accident, public liability insurance can help protect your assets and ensure no one else suffers financially because of an incident involving your business. Suppose a person gets injured while walking on the road due to signage promoting your business falling on them. The injured person can sue you for compensation. In addition, this type of insurance can help cover the costs associated with compensation claims, legal fees, and medical expenses.
Regaining Trust with Customers
For the sake of your business, you want to make sure that you are seen as a responsible and trustworthy company. One way to do this is by having public liability insurance. Having public liability insurance will show customers that you take their safety seriously and will encourage them to return to your business in the future if they need any similar services.
Protects the Business If You or Any Employees Are at Fault
If you or any employee is at fault, the business is liable. Employees will still be held responsible for costs if they are at fault.
Suppose your company has public liability insurance, and you get sued because of something one of your employees did wrong. In that case, the insurance company will cover all legal costs associated with defending you in court. Public liability insurance will not only protect you financially but can also help with any lawsuits that may arise from such an incident.
In addition to having public liability insurance, business owners should ensure that their company has adequate coverage for any property damage. For example, if your property catches fire due to any reason, you will need some level of protection against these kinds of incidents.
Protects the Business Against the Unexpected
Public liability insurance protects the business against unexpected mishaps and losses due to these accidents. For example, this policy may protect you if a staff member or a customer accidentally gets injured at your premises. It also covers you if someone is injured while using your equipment.
The law of negligence states that it is possible to be held liable for any injury to another person or property caused by an act of negligence on your part. So, for example, you could face legal action from the injured party and have to pay compensation for any losses due to the accident. Public liability insurance can help cover such costs that arise unexpectedly.
Protects Against Accidents and Injuries
Loss of income is a big deal. A business could lose thousands of dollars when an employee cannot work due to injury or illness. Public liability insurance covers any legal action brought against the business by injured parties and their legal costs and compensation claims. It also protects your business from paying out large sums of its own money for damages caused by accidents at work. Many employers have been sued for millions after an employee has suffered a serious injury.
It is, therefore, necessary for small businesses to Fortune 500 companies to have this type of insurance coverage before something happens that could cost them dearly.
Provides Your Business with Legal Support During a Claim
You need legal support to help defend the claim if your business is sued. It is an essential part of public liability insurance because it protects you from paying for all the costs associated with defending yourself and settling claims. It can include lawyers' fees, court costs, and even fines if you lose a case. The money saved on these expenses will be returned to your business through savings on premiums.
The first thing every business owner needs to know is how they can defend themselves against a claim. It means being aware of legal requirements, such as building codes and local ordinances.
Public Liability Insurance is Essential When You Run a Business
This type of insurance protects you from paying out large sums in compensation; it can help to reduce financial risk for your business. It also provides peace of mind that you will be covered should something tragic happen on your premises or during an organized activity like hosting a sports event.
Public liability policies cover claims made by members of the public who have suffered an injury due to faulty equipment or defective products provided by the insured party. To claim against public liability cover, an individual must show that they were injured due to negligence on behalf of another person.
If you are in the process of starting or running a business, it is very necessary to consider purchasing public liability insurance.