Public Liability Insurance is an essential part of the overall insurance scheme of risk management to protect both the buyer of assets and the lender from the potential risks of claims imposed by public lawsuits and similar accidents and protects both the insured and insurer if a claim comes within the current coverage of their insurance policy. This insurance has a number of sub-types with differing levels of coverage. The coverage itself however is what is protected and not necessarily the risks themselves. Claims for injuries are often the most common type of claim covered by this insurance while claims arising from negligence, errors and omissions, violations of contract, and other similar activities are commonly found in Public Liability Insurance policies.
Claims relating to medical malpractice and professional errors are also common. In fact, most legal liability policies will exclude these types of personal injury claims. In the UK, most personal injury protection insurance policies will also exclude most claims relating to work related injuries. While it is very rare for legal liability cover to exclude claims relating to errors or negligence, an insurance provider may choose to exclude certain claims depending on their subjective assessment of a risk. For instance, where a claimant is under the age of 18 years, or where the claimant’s injury was caused by a product which is not regulated by the UK consumer law, or where the claimant’s injury arose as a result of a work related accident, then it may be difficult for the policy to cover the claimant.
Public Liability Insurance protects against claims relating to: physical injuries; bodily injury or sickness; damage to property; defamation; errors or negligence; invasion of privacy; and false arrest, assault, battery or other bodily injury. Each of these categories of claim is covered by a separate policy, so even if a particular category of claim is dropped from your policy, your coverage for other claims will still be intact. The coverage will be subject to the risk factors detailed in your specific policy document.
In terms of calculating public liability insurance, the sum of all potential claims for each occurrence is compared against the total compensation costs for that occurrence. Any potential increase in these potential costs is then applied to the compensation costs for that same occurrence. If your business carries out any type of activity which puts customers or employees at risk, then you should consider whether public liability insurance covers this aspect of your activities. Public liability insurance covers you against the costs of injury claims made against you and also covers you against damage to property which may occur as a direct result of your business operations.
As the above describes the main differences between the two types of policy, there are a few similarities too. Both types of policy will provide you with protection in the event that you become liable for injuries suffered by customers of yours or that cause damage to any property owned by your company. Public liability and general liability insurance will both include a “no win no fee” clause. This means that if you are unable to make a successful claim, then you won’t have to pay out any money. It can be quite useful in situations where you might otherwise be at a disadvantage, such as in circumstances where you might have been negligent and had been unaware that you were at fault.
The types of negligence claims which public liability insurance policies cover are usually referred to as personal injury claims. These are usually the result of some other person suffering some type of injury as a result of your company’s negligence. For example, if you operate a car dealership and one of your drivers fails a speed check, he may be liable to a customer for this. If you were aware that this was illegal, you would have been expected to carry out a safety check, but you failed to do so and the consequences could be catastrophic for the customer.
In addition to personal injuries, it is possible for you to lose your business if you are found to have been negligent in some way as regards your business operations. This could include anything from damaging a client’s goods, to manufacturing defective products or even making false claims. Public liability insurance protects you from these types of claims. It also protects you from other claims which could make it difficult for you to run your business.
When you are getting a quote for public liability insurance, you should ask what it covers. If it only covers accidents, you may find that you are inadequately protected. You should always bear in mind that you are unlikely to be sued for injuries sustained while at work – but you may find that you are at risk of being sued for negligence even if you are not involved in an accident. Public liability insurance covers you for this, so you will be covered no matter what happens on your premises.