Public Liability Insurance

mid-adult man meeting with agent or advisor

Any business that deals with members of the public needs public liability insurance.

Public liability insurance protects your business in the event someone is physically injured while on your property. It also provides protection if someone's property is damaged by you or your business.

Public liability insurance also covers legal fees and hospital treatment, including ambulance costs.

Premiums are based on the type of business and the activity of the business. Shopping centers, theaters, hotels, sporting venues are among the types of businesses at greatest risk. For establishments where alcohol is consumed, the risk is increased. The higher the risk, the higher the premiums will be.

If a lawsuit is filed and damages are awarded to someone because of such injury or property damage, the insurance carrier will pay the amount awarded. Payments are made to the injured party, not the business that is insured.

There are several types of public liability insurance coverage. Employers are required to carry employers liability insurance, which protects the employer from claims made by employees. If you own properties for rent, landlord liability coverage is available.

Professional indemnity insurance is another type of public liability insurance. Professional indemnity insurance protects professionals from lawsuits relating to things such as breach of contract or slander.

Public liability insurance is not just for larger businesses or corporations. If a sole proprietor or a small business had to pay damages, it could lead to bankruptcy or insolvency.

One of the advantages of having public liability coverage is that should a claim be made against your company, the insurance carrier is required to act in your defense.

As when buying other types of insurance, take some precautions.

1. Get more than one quote.

2. Make sure the quotes provide the same coverage options.

3. Make sure the insurance carrier is reputable. Call the insurance commission in your state to find out if any complaints have been lodged against the carrier.

4. When getting a quote from an insurance agent, try and use agents who represent more than one carrier.

5. Check with your state insurance commission to find out what types of public liability insurance are compulsory in your state. Also find out the minimum amount of coverage required.

6. Check whether policy limits are affected by costs incurred by the carrier in defending you against a claim.

Premiums are based on the type of business and the activity of the business