What Does Public Liability Insurance Cover?

As a business owner, you have to protect your business from the costs of claims that may arise from incidents of negligence that occur on your commercial property or are related to your business activities. 

One of the main types of business insurance that you should have is public liability insurance. As the name suggests, this type of insurance is meant to protect your business from compensation claims made by members of the public. If you run a brick-and-mortar business, you can benefit greatly from having public liability insurance.

Below are some of the things that public liability insurance typically covers.

Personal Injury

You're responsible for ensuring the safety of all the people that use your commercial building. If a member of the public gets injured on your property and it is found that they got hurt because you acted negligently, then your business will be held liable for their injuries.

For example, if someone slips and falls on slippery floors because the proper signage required to warn them of the hazard wasn't available or appropriately placed, they may be entitled to sue your business and receive compensation for their injuries.

Accidental Death

In cases where an incident that occurs on your commercial property leads to the loss of life, then the families of the deceased can sue your business to get compensated for the death of their loved one.

This is the only situation when someone else other than the individual that was directly involved in an incident related to your business activities can receive compensation for damages.

Property Damage/Loss

If an item or property belonging to a member of the public is destroyed or lost by your employees, then your business will have to cover the cost of repairing or replacing the property if its owner decides to seek compensation for their damaged property. 

The legal principle here is that employees act on behalf of their employers, and therefore, the latter is responsible for the former's misdoings. 

Legal Expenses

Public liability insurance covers the cost of hiring a lawyer to represent your business in a lawsuit filed by an aggrieved third-party. This kind of business insurance will also cover the plaintiff's legal expenses if they win their case against your business.

Public liability insurance is necessary for your business but it may not be adequate. Talk to an insurance provider near you today to determine if public liability insurance is the right product for your business needs.