Do you run a business that involves interacting with the public? This includes your customers, suppliers, contractors and any other third parties that come into contact with your business as well as its activities. If you do, then you need to safeguard the business against any liability claims resulting from your interaction with these parties. And this is where public liability insurance comes in. This insurance will help protect your business against any liability claims arising from third party property damage, losses, death or injury. This will in turn prevent you from suffering litigation fees that could put you out of business. Here is a guide on all you need to know about this insurance.
What It Covers (And What It Doesn't)
Generally, public liability insurance primarily covers third-party property loss or damage. This includes covering the losses or damages to their property, which was in your care at the time. If the third-party damaged or lost their property or goods in your business's cars or while performing your business activity, the insurance will also cover against such loss and damage.
Public liability insurance also covers third-party injuries that may occur as a result of their visit to your business premises. Keep in mind that if first aid is offered during such injuries, public liability insurance will cover this as well. What's more, it will cover legal costs that you may have incurred when settling or defending a claim.
It's also important to understand what the policy won't cover before you take out public liability insurance. Typically, the policy doesn't cover injuries to your own employees, damages or losses to your own property, contractual liability, professional negligence, asbestos claims, costs involved in rectifying poor workmanship, etc.
Worth noting also is that there could be state- or territory-specific rules when it comes to public liability insurance coverage, so make sure to consult your lawyer too.
What Affects/Determines Your Premium
The cost of public liability insurance is imperative because it will help you budget accordingly. And usually, many factors determine the cost of the insurance, including the size of your business, the business, industry and type and the business location. Generally, larger businesses tend to attract larger premiums compared to small businesses because the risks of injury, damage or loss are usually higher. Therefore, in determining the premium based on the size of your business, insurance companies will take into account things such as the number of employees you have and your annual revenue.
When it comes to business type or industry, premiums will be calculated based on the level of risks involved. For instance, plumbers and electricians face different risks, and the higher the level of risk is, the higher the premiums will be.
Last, some business locations such as mine sites and construction sites tend to be considered as high risk and will generally attract higher premiums