Public Liability Insurance is a component of the general liability scheme of risk finance to protect both the buyer and the lender from the potential risks of damages imposed by claims and other legal claims, protects the insured when the buyer is sued for such claims which come in the coverage of his insurance policy. It is usually purchased by the businesses to cover their normal business activities from the possible claims in case of any disaster or accident. The insurance company pays the claim amount to the concerned individual. It also covers the parties involved in such claims, the risks they may run with respect to them, and also the compensation money that would be paid to them if they win the case. The terms and conditions governing the purchase of public liability insurance vary from one insurance company to another.
Usually the public liability scheme of risks covers companies engaged in the manufacturing, processing, transportation, utilities, mining, and pulp and paper industries. This public liability insurance does not cover the activities of non-profit organizations or those who carry out social service, but the requirements of such businesses do not exceed the limits stipulated in the public liability coverage policy. It covers only the following activities: the handling and packing of products, sales and service, advertising and publicity, and any actions related to the storage, transportation, production, distribution, and disposal of materials.
If you are a businessman and you want to buy public liability insurance, you should first consider the level of risk of your business. Your business activity should be closely monitored to ensure that your public liability coverage is sufficient. You should also have in place a process to control and contain the risk in case it becomes higher than what is required. You should have a written policy covering all your business premises, employees, and public areas. You should also consider public liability insurance covers that cover the following:
You should have a public liability indemnity policy with adequate cover for claims related to negligence, omissions, and errors and omission. The policy should cover all claims by a third party, employee claims, and damages for personal or bodily injury. In order to determine the scope of your policy, you should check the details with your insurance broker. However, you should remember to add your company’s logo and name at the time of registration.
Claims made by customers or visitors to your premises, or caused by defective products or services, are all within your responsibility. These claims should be settled promptly to avoid prolonged litigation and loss of potential revenue. For this purpose, you should take care to maintain a safe and healthy working environment, maintain prompt supplies of goods and services, provide training on safety, keep your premises clean and tidy, and make sure that all your employees are trained properly to prevent injury. Injuries that result from negligence on your part should also be covered under the indemnity. If you have neglected to take reasonable precautions to prevent injury on your premises, or if an employee has fallen or suffered an injury on your premises because of your negligence, then you may be liable to pay compensation to the victim.
Under state law, in order to make your business legally liable for injuries or property damage on the premises, you must have a ‘duty of care’ and a ‘concerting’ knowledge of those duties. If an employee of yours fails to meet these requirements, it is your responsibility to compensate that employee for the loss or damage. This means that not only can you be sued if an employee’s negligence leads to physical injury on the work place, but if your business is involved in any negligence that results in property damage, an employee may also be able to sue you for your company’s negligence.
Public liability covers are extremely important because they help you protect your assets, such as cash and stocks. Injuries at work or property that was caused by your business owner’s negligence may also be covered by these policies. Your business owner’s insurance should have covers for liability claims arising from medical malpractice, errors and omissions, manufacturing defects, negligence and wrongful death claims.
Public liability insurance can provide peace of mind for business owners as well as their employees and clients. It is easy to obtain and can offer you considerable protection. However, there are a number of things that you need to be aware of when looking for the right policy. Because claims will be paid only if you can prove that they were caused by your company’s negligence, you need to have adequate evidence to support your case.