When you run a business, someone may be able bring a lawsuit against you if they get injured on your premises or due to one of your products. To protect your business and personal finances, you need public liability coverage.
As with any type of insurance, public liability coverage includes a lot of different elements. Here's what you need.
1. Products Liability
If you manufacture products, this is an essential part of the coverage you need. If someone gets hurt due to one of your products, this coverage can pay out damages.
To be on the safe side, in addition to insurance, you need to focus on safety testing whilst developing your products, test for quality during manufacturing and advertise your wares carefully so people don't use them incorrectly.
2. Third Party First Aid Expenses
If someone gets hurt while on your business property, they may bring a suit against you for medical expenses that aren't covered by the country's universal health care system. This also helps with any pain and suffering claims.
Of course, to avoid these claims, you need to pay attention to your premises. If there's a wet patch on the floor, a crack in the sidewalk or similar dangers, make sure to address those issues.
3. Third Party Property
If someone's property is damaged due to situations related to your business, this type of coverage can be essential. For example, if you have a fleet of commercial vehicles and one of your driver's hits a third party's house, this type of policy helps in those situations.
To illustrate another example, imagine you own a hotel and someone steals stuff from one of your guests. In these cases, the guest could try to hold you responsible for those losses.
To reduce losses in this category, make sure all of your vehicle operators are well trained. Also, offer safes for hotel guests to use or consider setting up a coat check for restaurants. Any steps you can take to make your customer's possessions safer can help.
4. Legal Expenses
In addition to the payouts detailed above, you may get stuck with legal costs if someone brings a lawsuit against your business. So that you don't have to cover those expenses out of pocket, make sure that your public liability policy also includes legal expenses.
To learn more about which type of coverage you need, contact an insurance agent or broker directly.