Public liability insurance helps if a client or someone from the public says they got hurt or their property was damaged because of your business activities.

This insurance protects business owners if a claim leads to legal action. If that happens, the policy pays for the legal costs and any compensation you need to give. It also covers property damage.

In this article, we will explore why you need public liability insurance.

Let’s have a look!

What Does Public Liability Insurance Cover? 

Link with any insurance, you also need to know what your policy covers. Here, we will know that public liability insurance covers. You also can get a public liability insurance quote online to make the process more convenient.

Let’s dig out!

Personal Injury (Due to Third Party)

If your business deals with people, there’s always a chance of someone making a claim. As you know, accidents can happen anytime. 

For example, a client can trip a box in a store or a beauty product causing a skin reaction. Whatever the reasons are a claim can create a huge mess for your business. So, if you have public liability insurance, you can avoid such issues. 

Property Damage of Third Party 

This insurance covers accidents like damaging your client’s belongings. For instance, if you’re running a restaurant, your servant can spill something on customers. 

However public liability insurance protects workers as well as the business itself. Another example is if you provide plumbing service, you might damage pipes accidentally. But with the policy, you don’t need to worry about any claims. In short, if you want to prevent any type of third-party claims, it is better to get public liability insurance. 

Public Liability Insurance Covers Legal Claim Cost 

This insurance covers your legal costs if there’s a claim against you. As you know, these costs grow if the claim takes a long time to resolve. Sometimes, this can create huge financial losses. If you’re a small business, you can’t even imagine what would happen. Sometimes, you have to close all of your operations just because of high claim costs. So, it is wise to opt for public liability insurance to get peace of mind. 

Which Businesses Need Public Liability Insurance 

If your business deals with the public, clients, or suppliers, you should get public liability insurance. 

Retail Businesses 

Retail businesses work with customers and suppliers. They face risks like slips, trips, and falls. In simple words, everything can happen in your place. When you have this policy, you can continue your business without worrying about hectic claims. 

Hospitality

If you’re in the hospitality business, there’s also a chance of claims for food poisoning. But with product liability, you can avoid such risks.  

Tradies 

As you know, trade business of full of uncertainties. There are many unforeseen situations that you have to handle if you’re doing a trade business. Sometimes, your staff can damage client’s expensive belongings. But this policy fixes such mistakes and protects your business. 

Professional Services 

Many professionals interact with clients. You might have a home office where clients come to see you, or you might visit them at their location. In both cases, public liability insurance is important. It can help if a client trips and gets hurt at your place.

Why Public Liability Insurance Is Good?

Public Liability insurance isn’t required by law. However, some organizations ask for it. As you know, claims can cost thousands of dollars. On the other hand, workers are at high risk in the workplace. So, they need proper insurance to work for big firms. Besides all these things, having this policy can attract bigger clients. In simple words, this policy is the best for your business and other stakeholders. 

How Much Does Public Liability Insurance Cost?

There are several factors that insurers look at to decide how much the policy will cost. These factors include:

  • The size of your business 
  • Structure of your business 
  • Industry 
  • Level of risk associated with business 
  • Business Location 
  • Insurance claim history 
  • Health & safety records  

What Is the Procedure to Get a Public Liability Insurance Quote? 

If you want to get this policy, you must contact a credible insurance broker. Remember one important thing, you must check the authenticity of the insurer. If you live in Australia, you can find several brokers easily. 

Your insurance broker can ask the following things!

  • Your business details 
  • Industry 
  • Location 
  • How much cover you need 
  • Your claims history 
  • Personal valid contact information 

Once, you provide the information to your broker, they proceed and compare the policy options according to your demand. After that, they offer public liability quotes that suit you the best. 

Final Word 

Public liability insurance is vital for businesses that interact with suppliers, clients, or the public. However, this isn’t a legal obligation but having this offers several monetary and non-monetary advantages. It protects your business against potential claims. Last but not least, by understanding the factors that affect the cost, you can find the right coverage to protect your business.