A Comprehensive Guide on Public Liability Insurance

As a business person, imagine a situation where customer slips and suffers severe injuries on your premises. You would be exposed to legal liabilities as the customer seeks compensation for the cost of hospital bills, loss of wages, rehabilitation and future medical expenses. If your business has a public liability insurance cover, the insurance company will pay these costs. 

Public liability is an insurance policy that compensates third parties that suffer injuries on your premises. Third-party is a broad term that excludes the proprietor and their employees. As such, it comprises customer, suppliers, visitors, passers-by and trespassers. Below is a comprehensive guide on public liability insurance.

Who Needs Public Liability Insurance? 

Although public liability is not compulsory, it is a vital cover for any business that directly interacts with its customers and members of the public. For instance, contractors, event companies, restaurants, retail stores and malls would need a public liability cover. 

How Does Public Liability Insurance Work? 

Public liability will cover medical and rehabilitation costs incurred by a person who suffered an injury on your premises. Further, it compensates loss of wages, pain and suffering, disability and death.

Most insurers expect you to ensure a safe working environment to minimise accidents at your workplace. For example, shoppers should be warned of slippery floors. On the other hand, contractors should barricade the site to prevent unauthorised personnel from accessing the area. Any visitors on-site should have personal protective clothing. 

Once someone suffers injuries at your workplace, the insurance company will send an accessor to investigate the claim. You may need photos and witness statements to prove the incident. A business that makes too many claims is considered risky. As such, the insurer will increase the annual premiums.

Choosing a Public Liability Cover 

When shopping for public liability insurance, work with a broker specialising in your industry. The broker will access the scope of your business and advise how much cover you need. For instance, a supermarket or contractor would need more coverage than a grocery store. In some circumstances, the broker can help you combine public liability with other forms of insurance such as general liability, professional indemnity, product liability and workers compensation insurance. It ensures you have an easy time paying your premiums.

Some considerations to make when choosing an insurance company include the ease of making claims and receiving compensation, premiums, level of customer support and the terms and conditions of the insurance cover.

Public liability insurance protects your business from legal and financial liabilities caused by third-party injury claims. An insurance broker will help you choose an appropriate cover.

For more information, contact a company like National Corporate Broking Pty Ltd.

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