PUBLIC LIABILITY INSURANCE EXPLAINED

Background:
No matter where your business is located, it only makes sense to have the right type, and amount, of insurance coverage. One type of business insurance your business should never be without is Public Liability insurance. It has been estimated that nearly 40% of all small business owners do not have this coverage because they believe it is cost prohibitive- however this is not true.

Define:
Public Liability Insurance may also be referred to as Casualty Insurance. This type of policy will provide benefits should someone be injured on your business property. Your business will be liable for any expenses caused when a person is injured while on your property, unless you have a liability policy. Not only does this type of coverage shield you and your business against personal injury claims, it will also take care of any property damage suffered by another individual’s property.

Explain:
Imagine if you will, a customer in your business tripping over a rug which turned up at the corner. The customer falls and breaks their wrist catching their fall. The customer can bring a lawsuit against you and your company for recovery of hospital bills and possibly loss of income if they cannot work because of the injury. Public Liability Insurance will also help you if you are responsible for causing a loss at a customer’s residence. Property damage is just one of the items covered in your policy. Your public liability insurance is a shield of protection for both you and your business.

Summary:
Waiting until you need any type of insurance is a risky business. All businesses need to have full coverage which includes policies that cover product loss, and damages to the business structure. These are required in most areas, but to save money some business owners will forego purchasing a Public Liability policy. The usual reasons given are they believe it is too expensive, or that they likelihood of using it is slim. Neither of these reasons is good enough to excuse the negligence of not carrying the policy should a claim arise against your business.