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What Public Liability Insurance is?
Public Liability Insurance should be considered if you are running a business; especially when members of the public, customers or clients visit your business site. If you run a business from home and clientele sometimes visit you there, availing for public liability insurance might also be a great idea.
What does Public Liability Insurance provide for?
Public Liability insurance will help you when someone is injured by you or your business operation by accident. It will also cover you if you damage third party property while on business. The cover should include any legal expenses and fees which result from any claim by a third party, this will even cover hospital expenses if any.
This type of insurance will only cover third party claims (i.e. not your own employees – you need Employers Liability Insurance for your own employees).
You should always make sure that your insurance company knows what kind of business you run, and you should always inform them if your circumstances change, as this may affect your policy.
Examples of Public Liability Insurance Claims
1) You run a dry cleaning business. A client comes in to pick up some clothes, but trips up on a loose bit of flooring in your shop. Public liability insurance would cover your business if the customer claimed for injuries sustained as a result of the un-maintained floor.
2) You are a self-employed IT support technician. Whilst at a customer’s site, you accidentally knock over a cup of coffee, and the contents pour down the back of a computer, damaging it beyond repair. Public liability insurance would cover any claim from the customer.
This should always be considered to avoid these: Business owners must always take reasonable care to ensure the premises are reasonably safe. Costumers in turn must take reasonable care for their own safety.
How much cover do I need?
This will depend on the nature and size of your business operation. Many small businesses will have $1m of public liability insurance cover – this may sound a lot, but if you suddenly have several claims against you, the costs can mount up. Despite the seemingly large amount of cover, typical premiums are not high.
How to get a quote?
As public liability is the most common insurance taken out by small business, you should be able to find a competitive quote in the market.