Taking out public liability insurance is not obligatory for all businesses and organizations. However, failing to take out this sort of coverage can often be a costly mistake for anyone who owns or controls property where members of the public visit. Many people often wonder if it’s not required then just why they should buy public liability insurance?
Public liability insurance provides protection to the business or organisation in the event that an accident occurs. This could result in death, illness, some kind of loss or injury. These would happen as the result of some kind of negligence on the part of the business or organization and it would also cover any volunteers working on behalf of a company. With this type of coverage, third parties cannot directly sue employees or volunteers. It only covers third parties and is not applicable for employees.
Not only does public liability insurance protect against physical injuries or loss but it also pertains to property. Public liability insurance will cover loss or damage to property that occurs as a result of the actions of someone affiliated with the business.
There are many different scenarios where public liability insurance would kick in. For example, if a worker is completing a job at a client’s home and breaks something, the policy would cover the repair expenses. If a child is injured on your property on defective playground equipment, then the medical expenses will be cover under the public liability insurance policy.
Public liability insurance does not cover the injuries of an employee that happen as a result of the employer’s negligence. For this kind of coverage, the employer would need employer’s liability coverage. Additionally, any injuries, losses or damage that occur as a result of the professional services being rendered are not covered. This would require professional indemnity insurance.
Given all the things which can go wrong, public liability insurance is definitely a necessity for any business or organisation. The premiums can be quite reasonable but the exact costs of the public liability insurance depend upon the nature of your organization or business. Generally, the premiums range from $300-$1000 in the US and £100 to £300 in the UK.