What You Need To Know About Public Liability Insurance (PLI)
If you are self-employed or run a business in which you are in contact with the public, then it is vital to have public liability insurance. This form of insurance policy provides a safety net in case of an unprecedented accident or incident. You are likely to be sued by a member of the public for an accident or incident, even though it was not your fault. Having PLI is your best defense in such situations. Here is some basic information about public liability insurance.
What Does Public Liability Insurance Cover?
Public liability insurance covers potential claims that you are likely to face from a member of the public. This insurance cover protects your business in case of a lawsuit. PLI covers bodily injury, thus minimizing the risk of a person sustaining injuries on your business premises. This includes your parking lot or any areas outside your property.
Public liability insurance also protects your business from damaging another person's property. For example, if you are offering services at a person's home and you break a window or cause any form of property damage, this policy will cover those damages. PLI also covers the legal expenses arising from a lawsuit.
What Public Liability Insurance Does Not Cover?
PLI does not offer protection against accidents that affect you as a business owner in the course of your business activities. Personal protection against accidents is provided by general liability and personal insurance. Additionally, injuries or accidents to your employees while they were working for you at your business premises are not covered. This form of insurance coverage is provided by workers' compensation insurance.
Public liability insurance does not cover the costs for defamation charges. This form of coverage includes false statements made by the company or company officials in media such as advertising materials. Defamation charges are covered by general liability insurance. PLI also does not cover malpractice or professional liability lawsuits. Malpractice insurance is meant to cover errors and admissions committed by professionals in a professional capacity like architects, CPAs, doctors and chiropractors.
Endnote
Getting public liability insurance is essential for any business owner. Not only does this coverage protect your business against lawsuits, but it also covers bodily injury and damage to property. For defamation and malpractice, you might need additional coverage, such as general liability insurance and malpractice insurance. To determine what is covered in your policy, consult a commercial insurance provider before you make any final decisions.
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