How public liability insurance shields your business from slips and accidents

What is public liability insurance?

Public liability insurance is a type of insurance that helps protect your business from the financial impact of accidents that happen on your property. If a customer or visitor slips or gets hurt while on your premises, the insurance can cover associated costs like medical bills, legal fees and damage claims. It is like a safety net which ensures that if an accident occurs, you don’t have to bear the financial burden alone.

How public liability insurance protects businesses from risks

Here’s how this insurance protects businesses from risks:

1. Protection against third-party injuries: If a third party, such as a customer, visitor or any non-employee, suffers injury or death due to your business activities, the policy provides financial protection. For example, if a customer slips and falls in your store, a public liability insurance policy helps with the compensation claims, including medical bills or any settlement for injuries.
2. Coverage for damage to third-party property: If your business activities accidentally damage someone else's property, such as equipment, inventory, or personal belongings, this coverage helps protect you from financial costs.
3. Legal expenses: This policy also covers the costs of defending your business against claims. It includes lawyer’s fees, court costs and other related expenses, so you don’t have to worry about the financial burden of legal matters.
4. Pollution liability coverage: If your business involves activities that could potentially cause environmental harm, this coverage protects you from claims arising from accidental pollution or contamination. It is especially relevant for industries like chemicals, pharmaceuticals or manufacturing, where accidental spills or releases of harmful substances could lead to damage or health risks
5. Safeguards your reputation: The policy covers compensation claims and legal costs, so you don’t have to worry about accidents affecting your reputation. It helps maintain your business’ credibility, allowing you to continue building trust with your customers.
6. Financial security: Accidents can lead to unexpected costs, like medical bills, legal fees or property damage. With public liability insurance, these costs are covered, giving your business the financial protection it needs. This allows you to keep running your business smoothly without worrying about how to pay for these expensive claims.
7. Peace of mind: As a business owner, the last thing you want is to be caught off guard by an accident or lawsuit. With this insurance, you can relax knowing you are covered for a range of risks. It means you can focus on growing your business without the constant worry of unforeseen accidents causing major financial setbacks

What are the exclusions of a public liability insurance policy?

While public liability insurance provides coverage for many risks, there are certain situations it doesn’t cover. Here are the key exclusions:

• Professional errors: This policy does not cover mistakes made in your professional work, such as errors in advice or service. The insurer only compensates for liabilities related to third-party injury, property damage, disability and so on. Professional errors are covered under professional liability insurance.
• War or war-like situations: If your business suffers financial loss due to war, civil unrest or similar situations, this type of insurance will not cover the damages. These situations are typically excluded as they are unpredictable and out of control.
• Intentional damage: If damage is caused intentionally, the insurance will not cover it. Only accidents or unintentional actions are covered under this policy.
• Damage to your own property: Public liability Insurance only covers damages or injuries that affect third parties. If your own business property (such as your building, inventory or equipment) gets damaged, it is not covered by this policy.

Conclusion

Public liability insurance is an important coverage that protects your business against the unexpected. It helps you manage the financial impact of accidents and other third-party liabilities that could otherwise lead to significant costs and damage your reputation. By covering medical expenses, legal fees and compensation claims, this type of insurance ensures your business can continue operating smoothly without associated financial burden. With this coverage, you can focus on running and growing your business, knowing you are protected from the risks.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.