2 Reasons Your Business Needs Public Liability Insurance
Posted on: 19 May 2022
If you run a business, then you need public liability insurance. Many business owners mistakenly believe that their commercial general liability policy covers them for any liability claim, but that's not always the case.
Public liability insurance protects your business from claims made by third-party members of the public. Particularly those that sustain property damage or suffer injuries because of your actions or negligence.
Here are three reasons why your business needs this type of insurance coverage.
Protection from Costly Legal Fees
When running a business, be prepared for the unexpected. No matter how well you plan or cautiously operate, accidents can happen.
If a customer or member of the public is injured on your property or due to your business activities, they may take legal action against you. You could try to settle the claim without involving lawyers. But, depending on the severity of the injury, this strategy could cost you more in the long run.
If you are taken to court and found liable for damages, you will be responsible for all legal fees. These fees can quickly add up, especially if the case goes to trial. Even if you are not found to be at fault, the cost of defending yourself in court can be high.
With public liability insurance in place, your insurer will cover these costs on your behalf. Public liability insurance is designed to protect business owners from the financial burden of litigation. If you're sued, your insurer can provide financial assistance for your legal defence.
Whether you run a small home-based business or a large company, public liability insurance is an essential form of protection.
Compensate the Plaintiff
If you are at fault, you may be ordered to pay damages to the injured party. These damages can include medical expenses, loss of earnings, and pain and suffering. The amount you are ordered to pay will depend on the severity of the injury and the impact it has had on the victim's life.
For instance, say a customer slips and falls in your store, suffering a broken leg. They may be able to claim for their medical expenses and any loss of wages if they can't work while they recover. If the injury is more serious, such as paralysis or a traumatic brain injury, then the amount of damage is likely to be much higher.
No matter how big or small the claim, if you are found to be at fault, you will be responsible for paying the damages. With public liability insurance in place, your insurer will step in and cover the cost of the damages. This policy can protect you from paying out of your own pocket and potentially putting your business at risk.
Your insurer may cover the cost of compensating the plaintiff up to your policy limit. Your public liability insurance policy can ensure you don't pay out of your own pocket if you are liable for damages.
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