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Insurance public liabilityAny industry or business has a lot of processes and activities that can affect third party like visitors, sub contractors, customers or members of the public. Damage may be physical injury or damage of the third partys property. Though the laws and regulations relating to the Public Liability insurance varies from state to state in United States and from countries like United Kingdom.
In some countries the state has made it mandatory to have public liability insurance; most of the business organizations include the public liability into their insurance budgets. The public liability provided by most of the companies includes warranties, exclusions and conditions which may be very burdensome to the business organizations. Organizations do not consider these risks arduous as there is cover for legal fees and even other expenses incurred for defending the claim in case of any damage or injury.
Which are the businesses that face the maximum risk
Businesses which have a huge number of third parties visiting their business space face the risk of public liability. For example pubs, clubs, sporting venues, hotels, resorts, shopping centres, markets all this areas face the maximum risk. Risk also increases with usage of alcohol and sporting activities like hotels and pubs. Some specific industries are considered as very high risk they are cleaning and security departments.
What is the need for Public Liability Insurance
To reduce and eliminate the risks of running a business, public liability insurance is a requirement. This insurance deals with the worst scenario. Worst scenario is the case of risk where damages caused by the company may run into millions of pounds. This may cause bankruptcy of the business itself. The protection of business helps the business owner to concentrate on business rather than worrying about the worst case scenario.
Examples of Public Liability
Let us see a case of plumbing company. A worker is assigned to repair the damaged pipe in the kitchen. Accidentally the pipe bursts and the office is flooded. The customer makes claims for damages caused to their computer systems and carpets. This is where public liability helps.
Another example is a marketing firm run in a small office. Here the client who is visiting injures his knee when he trips on the carpet. The client claims damages for his injured knee which the firm has to pay.
Many such instances can be quoted for liability risks which small business face.
Public Liability Insurance is a requirement for many industries like builder, manufacturers, tradesman, office based workers, plumbers, home workers, charity, care homes and voluntary sectors. All these businesses need public liability insurance to protect them without which the very foundation of the business is shaken.
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