What is Public Liability Insurance?
If your business is the type where you
are likely to meet public, client’s
coming to your site or you go and work on a client’s property, you should get
public liability insurance. It is not as much as you needing it but it has more to do with the fact that it is a safety
net in case you run into trouble. If something damaging happens, you might not
be ready to cover it but it could potentially ruin your finances.
In addition, you need to remember that
as a society, we are very litigious and it is only increasing each day. Even
though you might not be in the wrong, but if someone decides you are then just
to prove your innocence you might need to take legal action or have one taken
against you. Having a case gone to court is ahighly
expensive proposition. Having a public liability insurance will help you cover
this and more.
There are a couple of things you need
to know about public liability insurance-
PLI is an insurance that covers you
and your business against any compensation or legal action taken against for
damaging or injuring a member of public or their property. More often than not,
it is most likely to be a compensation claim against you or your company. Even
so, trying to cover thatwith your wallet might ruin your finances as these
might include medical bills, repair bills for property etc. Having a public
liability insurance in place would help you work through all this and more.
You need a PLI if you or your business
works with the public. Businesses like a café, salon, gym, cleaners, roofers,
plumbers, tradesmen, shops, etc., should consider getting a public liability
insurance. Even if you work from home but have clients visiting you at home,
even though you should consider getting a public liability insurance. You need
to be prepared for various instances like, hot coffee dropped on a customer, a
customer tripping over your furniture or any type of damage that could happen
to a customer or your equipment while servicing them.
A PLI is not compulsory by law. However,
more and more public sector contracts and projects require you to have one. PLI
is becoming a prerequisite for multiple regulatory bodies to work in a
particular industry. IF you are not sure if your industry is one ofthem, you
should consult a senior insurance advisor.
A PLI is not compulsory but an
employer liability insurance is. If you do not work independently but have a
team of people working for you, it is mandatory for you to take an employer liabilityinsurance to cover any injuries that happen to them. However,
interestingly, if you are working alone, then it should be the first thing on
your list. If some accident occurs or something goes wrong, you are the only
one responsible for the legal action bills or repair and medical bills. Taking
care of this without someone as a backup would mess your finances and leave you
and your business in a lurch.
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