Public liability insurance is an important insurance cover for every business. It is a part of overall business insurance policy. This insurance is designed to cover your business against the event of any injury and property damage to a member of a public or against the third party claims that resulted in case of your negligence.
Now a question arises in your mind. Does every business need public liability insurance? The answer depends on the location and the type of business you are in. If you are running a business that involves frequent public visit or if the activities of your business results in a direct loss to the third party or the member of a public, you need to take public liability insurance for your business.
Though it is not mandatory for every organisation or compulsory by law, but the risks of not taking proper public liability insurance will result in huge losses and sometimes your business activities get interrupted which lead to closing of your business.
Suppose if you are in a construction business and one of your company worker drops a piece of equipment unexpectedly on the road and that causes an injury to a passer-by pedestrian, the pedestrian or the member of the public makes a claim against your company.
In such a case, you may decide to settle the case in the court by finding a solicitor for you. If you win you have to still pay for legal costs. But if you lose, you need to pay the compensation for the injury along with the legal costs. If the injury is very small and can be curable within short time, the compensation you need to pay might be less. But in the event of sudden demise of the member of the public, the cost may result in huge loss to your business.
Hence, cover your business to the extent in such a way that the small or big unexpected costs can be reimbursed by the insurance company.