The primary financial goal of every business is to keep costs down while increasing revenue. Given this, the purchase of public liability insurance may seem to be just an extra expense which does not bring sufficient benefit. However, this is not the case. The reality is that this type of cover can protect your revenue and assets in a highly effective way. Find out everything which you need to know about it in order to make the right decision.
What It Does
The purpose of public liability insurance is to provide protection in case of claims for compensation made against your business my members of the public. The typical policy covers bodily injury and property damage. It is also possible to get extensions which provide for more comprehensive coverage. For instance, you can get your company insured for defamation, libel and slander. Basically, the policy is designed to cover you in case of issues which may arise due to the interaction of your company with the general public.
How It Protects You
There are several ways in which a public liability insurance policy will protect your business. It covers you for accidents which can occur on your business premises. For instance, if a visitor to your office slips on a wet floor and get injured or breaks his luxury watch, you will be able to use the policy to pay compensation.
If you provide mobile services or services on the premises of clients, you will be effectively protected as well. If you run a plumbing service business, for example, and you or one of your professional technicians accidentally breaks a valuable object in a client’s house, the policy will kick in to protect your revenue and assets.
Service business owners must know that their professional liability cover cannot be used in situations like the one described here. This is because it provides protection only in case of negligence, error or omission affecting the quality of the provided service. In the above example, if the plumber makes an error while providing pipe repair and the pipe starts leaking again and causes damage, the professional insurance will be used.
Making a Choice
It is important that you buy public liability insurance if you have direct interactions with members of the public as part of your business operations. Typically, the cost of owning such a policy is not particularly high while the benefit is substantial. You will get perfectly effective and reliable protection with a policy which has few restrictions and limitations and comes with a sufficiently large cover amount. Shop around to find the best deal for you.