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Public Liability Insurance Explained

If you are holding a one-off event, or own a shop, where the general public frequent, then you will need public liability insurance. This type of policy protects you from legal and medical costs that arise from an incident on your property, even if you are not to blame. General business policies also coves you for public liability but only to a degree. Public liability coverage has become increasingly popular with an increasingly number of liability lawsuits being filed every year. For this reason,covering yourself in this area has become of paramount importance.

Who is a potential candidate for this type of policy?

Public liability cover protects you, and your business, from financial loss caused by injury to a member of the public at your place of business resulting from negligence. Public liability insurance has become broader with liability cases going to court with spurious claims being made against incidents not related to negligence and also due to damage of goods. This has made it even more necessary.

What typically does it cover?

Public liability insurance covers you if a member of the public is injured on your premises due to negligence. Your insurance policy will cover all legal and medical costs. Your policy should also include any potential compensation pay outs including ongoing disability payment costs. In today's litigious society these costs can run into the millions of dollars.

What typically does it not cover?

If your business is not deemed to be a safe environment caused by deliberate neglect then your policy may become void. In this instance, you are personally liable for the financial burden of the liability claim. This can run into the tens of thousands of dollars. Ensure that your workplace is designed to minimize public risk. If it is, you should be able to make your claim successful.

Additional coverage that policy holders might take out in this area

Business coverage is an extra safety net that you can utilize in the event of a claim as it will provide extra legal cover. Professional indemnity insurance will also cover you in the event of a claim made against you because of professional negligence caused by mistakes, bad advice or general poor workmanship. This is useful if you have a great number of contractors you cannot specifically monitor on a day-to-day basis.

Additional coverage for a public liability insurance policy

Public liability gives you a dollar figure of cover against resulting medical and legal costs. The only additional coverage you can apply for is to increase that dollar figure. This may be necessary if you are expanding your business, buying new premises or any other event that will impact your need cover.

What does it typically cost?

Premiums are determined by the industry your business is in, the number of employees and contractors you have onsite and occasionally your business turnover. The larger the sites with the more employees the greater the premium you are likely to pay. Rates range from 0.5% of your total cover to 1.5% depending on the insurer you choose to go with.

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