Public Liability Insurance is a crucial element of an overall insurance scheme to protect both the buyer and the seller against the potential risks of lawsuits and similar claims placed upon them by others. Public Liability Insurance was first created in the United States in 1982 to address the problem of insurers accepting claims which were not valid. Today, with more experience of litigants putting forward spurious cases, this insurance has been increasingly used as a protection mechanism against unwarranted litigations.
The basic function of public liability insurance is to provide cover for the damages incurred by a client when he is held to be responsible for injuries caused at his premises. It covers legal expenses and court costs, and pays to the victim or parties who are injured on his premises. The pay out under the scheme depends upon the extent of cover as well as the nature of claims placed against the client. It is typically meant to cover the client’s legal expenses and other related costs that are related to personal injury claims.
The types of injuries covered by public liability insurance include slip and fall injuries and other related bodily injuries. The harm can be physical or psychological. It is also covers claims made against businesses such as bars, restaurants, hotels, motels and other eating and drinking establishments. It is important to point out that the harm can be caused either on the premises of these businesses or off-premises. As a result, the claim is placed upon the business itself.
Most of the injury claims are lodged against businesses and hence, public liability insurance serves as a safety net in times of need. There are other types of public injury schemes as well. They include workmen’s compensation, which ensures employers cover all financial loss sustained due to an employee’s injury at the workplace. This applies to situations where an employee is killed or seriously injured due to the negligence or deliberate actions of an employer.
Another type of policy is for property damage. In the United States, it is common for some landlords to require tenants to purchase this type of policy in order to cover property damages incurred. Similarly, businesses conduct business through the use of their premises. If there is damage on the business premises due to fire or any other cause, the business requires protection from claims. Claims can be placed if the business is found to have held liable for injuries or damages to people or property that occurred on the business premises.
In cases where the public liability insurance protects businesses for property damages, they will also protect them from liability for personal injury that may occur on the premises. In many states, a business owner is not required to obtain liability coverage, and it may not always be the case that an employee will be covered for any injury that occurs while using the employer’s premises. For example, if an employee breaks a leg on the job, and as a result requires medical treatment at a local hospital, the employer may be responsible for that treatment. This could include a claim for pain and suffering. It could also include a claim for damages to clothes, furniture, and equipment. Only the property owner or landlord is typically covered for personal injury that occurs on his or her property.
A public liability insurance policy can also help protect against defamation or opinions about another person. These types of claims are commonly brought against employers for the content of what an employer says about another employee on the job application or during an interview. It is important to note, however, that even if the employer has a policy against these types of comments, it is still possible for a person to make a false statement in an effort to make a claim. In these cases, the company could be sued for statements made that were made within the scope of the company’s policy, or for statements made within the scope of a contractual relationship with the third-party.
In addition to providing protection from lawsuits, public liability insurance can also protect employees who injure themselves on the job. It is possible for an employer to be sued for medical expenses that arise from an employee’s negligence or wrongful act. Even in situations in which an employee is not sued for acts of negligence on the job, this type of business insurance can cover liability for injuries that occur off the work site. For example, if employees work at a scrap yard, and an employee drops an item off for collection, and that item is damaged on the way to the customers, an employer might be responsible for the cost of repair. This type of incident is likely to occur more often than would be expected, and is often covered by a public liability insurance policy. It is also possible for an insurance claim to cover incidents like these that occur off the work site, but the extent of coverage will vary according to the policy coverage limit for each type of occurrence.