Public Liability insurance is the insurance plan that covers the possible risk of compensation that has to be compensated by a company to a customer in the event of the client getting wounded in the premises of the company. It will also cover any damage that is caused to their property by your business. Additionally this insurance will reimburse any money that you have paid as legal charges for defending any such claims. This becomes important when you have to pay a huge amount of money as legal costs even if the court does not award any damages.
What Is The Use Of Public Liability Insurance?
The requirement for public liability insurance is understood by the fact no one can run a business that has no risk at all. You should never ignore the risk factors that are linked to any business. You can never wholly eliminate risk from any business. Furthermore it is the duty of the business to compensate cash for any injury to the customer or loss of his property resulted because of your business.
This should never be considered lightly as this can go more than a million dollars. What you can do is purchase this public insurance policy so that you will not have to pack your baggage when a catastrophe like this happens. You don't have to be anxious even if the claim is too much; the insurance company will be there for your rescue and will compensate the claim and also the sum paid as the legal fees.
Here are few examples of when you would require public liability insurance. Just assume that you have a plumbing company. You get a ring from a client about some repair in his kitchen. You go to his house and start work and by mistake you burst a pipe. The water that gushes out spoils the computer system nearby and also the priceless Persian carpet. You will certainly have to pay for all this.
Here is another example. You are managing a marketing business. Your customer visits you in your office and to your bad luck; he twists his ankle because of the poor floor covering system in your office. You will surely have to pay damages for his injury. Likewise, you have a construction business, and one of your employees drops something really heavy on a parked car. You will have to pay for that.
What Is The Use Of Public Liability Insurance?
The requirement for public liability insurance is understood by the fact no one can run a business that has no risk at all. You should never ignore the risk factors that are linked to any business. You can never wholly eliminate risk from any business. Furthermore it is the duty of the business to compensate cash for any injury to the customer or loss of his property resulted because of your business.
This should never be considered lightly as this can go more than a million dollars. What you can do is purchase this public insurance policy so that you will not have to pack your baggage when a catastrophe like this happens. You don't have to be anxious even if the claim is too much; the insurance company will be there for your rescue and will compensate the claim and also the sum paid as the legal fees.
Here are few examples of when you would require public liability insurance. Just assume that you have a plumbing company. You get a ring from a client about some repair in his kitchen. You go to his house and start work and by mistake you burst a pipe. The water that gushes out spoils the computer system nearby and also the priceless Persian carpet. You will certainly have to pay for all this.
Here is another example. You are managing a marketing business. Your customer visits you in your office and to your bad luck; he twists his ankle because of the poor floor covering system in your office. You will surely have to pay damages for his injury. Likewise, you have a construction business, and one of your employees drops something really heavy on a parked car. You will have to pay for that.