Questions About Public Liability Insurance Answered


Are you a business owner looking for a way to add extensive protection? A business that includes interaction with the public in its operations should consider public liability insurance. Not every business is legally bound to have this type of insurance. When you consider the advantages you will get why so many business owners have already issued their PLI, even if it isn’t required by law.

What Is PLI?

Public liability insurance is a type of insurance that will have your business protected against accidents that involve members of the public. If a customer, client, member of the public, or other third party suffers injury or property damage from your side, the insurance company will cover the costs.

What is covered by PLI?

This works for businesses that are visited by a large number of people, or ones that perform operations on other people’s property. For example, you are the owner of a restaurant. One of your guests sits on a chair, and the chair falls down. The insurance will cover the costs. Or, you own a cleaning company. One of your workers is sent to the customer’s home to do their job. If they break a window, then the public liability insurance will cover this cost.

Why Do You Need Public Liability Insurance?

Instead of exposing yourself to unwanted costs, public liability insurance will have you covered. Keep in mind that accidents will always happen, no matter how hard you try to prevent them. For small businesses, a huge cost is a question of existence. If your entity is required to pay damage for injury or property damage, the insurance company will cover the costs. For small businesses, this step is crucial. Enormous costs of this kind can be a threat. But, the PLI will protect your business and save you from worries.
The injured party will claim compensation. Even if the case ends successfully for your side, you will still have legal costs to cover. And these can be threatening for small businesses. Your PLI will cover these costs as well.

What Does PLI cover?

The PLI will cover injury, property damage, and legal costs. Coverage includes any type of bodily injury that happens on your property or around it. Also, it includes any kind of property damage that occurs. This includes damaging someone else’s property when it is on your side. Also, this includes damage to other’s property as a result of your work. But, many don’t know that the PLI will also cover legal costs in a customer’s lawsuit.

What Isn’t Covered?

The insurance covers a wide area, however, be sure to consult with your agent for the things that are not. It will not cover accidents to the business owner, as this area is covered by personal insurance. Knowing that this refers to the members of the public, it won’t cover an accident that occurs when workers are working on your property. This specific policy only covers damage occurred on someone else’s property, and injury to public members when they are on your property.