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What You Need to Know About Public Liability Insurance

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No business operates in a completely risk-free environment. Like it or not, events that may cause financial loss to your business can happen at any time, and when they do happen, the business should be cushioned against them. 

Taking out business insurance is one of the best ways to protect your business from the risk elements it faces. Many different types of commercial insurance exist to meet the different needs of your business. Public liability insurance is one of the common ones your business can't afford to do without. Read on to learn what public liability insurance is, why your business may need it, and more.

What is public liability insurance?

While you're doing business, there is always a risk that an incident resulting from your business activities may cause personal injury to a member of the general public or damage their private property.

Public liability insurance is a form of general insurance designed to protect your business against the cost of claims made by third parties (members of the public) for incidents that happen on your commercial premises or off-site but due to activities performed by your business. It typically covers the cost of compensation for:

  • bodily injury
  • accidental death
  • loss of or damage to property

Where your business isn't at fault for the lawsuits or similar claims brought against it by a third party, public liability insurance may also cover the legal costs incurred while defending any claim brought against the business. 

Why does your business need this type of insurance?

Whether you need public liability insurance depends on the type of business that you operate and where it is located. If you run a business within a building that people visit for professional purposes, you will need to have this type of business insurance.

You'll also require public liability insurance if your business organises off-site events that members of the general public can attend. Event organisers are a good example of businesses that require public liability insurance for events.

How much public liability coverage you'll require depends on your business's specific risk exposure levels. If you run a purely online business, you may not need this type of protection for your business.

While not all businesses require public liability insurance, most can benefit from having some type of it. Consider discussing your business needs with a public liability insurance professional to know what you need to protect yourself.