Public liability insurance, as a part of general liability insurance types like product liability, covers any damages that are done to a person of the general public. The type of damages that can be done to someone of the general public includes damage to their property or injury to them.
You want to make sure you have public liability insurance in place for a number of reasons. First, you do not want any settlements to come out of your bottom line. This can hurt your business and this is one of the reasons why businesses have general liability insurance. They have to protect themselves financially.
An example of how public liability helps a business is when large department store chains have lawsuits filed against them. Sometimes you hear about it in the news and sometimes you don't. However, they are always happening. You may find it staggering to know how often some of the major chains are sued. Through their insurance, they are protected from the financial consequences of these lawsuits.
What is Covered?
There are a number of expenses that are covered by public liability insurance. Those items include cost of hospital treatment, if any is needed, and legal fees. If property damage was done, the legal fees and the cost of the damages are covered.
Any time that you or someone in your business is responsible for causing an injury to someone, their health insurance won't pay for the accident. When a claim is made on the health insurance of the injured, there are questions asked to them regarding whether or not the injury was due to an accident. If the individual answers "yes," then they are asked to provide details of that accident. The reason for this is because the health insurance company wants the responsible party to pay.
Because of this, you can expect to have a claim filed against you. Being that you are a business, there is a likelihood that someone at some time is going to be injured. You need to be protected.
The same applies to property damage. If your business operates any sort of machinery, something may occur. Even if you don't operate heavy machinery, there is always the chance an incident could occur. For instance, a retail establishment with shopping carts may be very busy and a shopping cart hits a car. If the car is severely damaged, a claim may be filed to fix the damages.
After the Claim
After the claim, it is business as usual. You can, however, expect the premium to your general liability insurance to go up a little bit. This is necessary to offset the amount of money that was used in the settlement. This is something that occurs to everyone.
Nevertheless, the affordable premium means that it is still going to be affordable. The premium is especially affordable when you compare the cost of it to what it would cost you to settle a claim out of your pocket. Claims have been known to become very expensive for businesses, but, fortunately, most do not have to pay the large monetary damages out of their pockets because they are insured.
So if you are not yet insured, make sure you acquire public liability insurance so that you are not held financially liable. Although you are held liable for an accident or property damage, you don't have to pay out of your pocket. Your general liability insurance can do that for you. You are given a significant amount of financial protection because of your insurance and you receive that protection at a reasonable rate with high limits.