Public liability insurance (PLI) is perhaps one of the most critical covers because businesses operate in a highly litigious environment. Besides protecting you against financial loss from personal injury compensations, PLI covers you against accidental property damage claims. For instance, public liability insurance will cover repair and litigation costs if you are doing roof renovations on your business premises and tiles fall on a public member's car. However, choosing a PLI policy is not as straightforward as you might think. You need to make essential considerations when buying a PLI cover.
Level of Risk Exposure — There is no doubt that any business that interacts with members of the public and other third parties must get public liability insurance. However, risks involving the public vary significantly from one company to another, impacting the amount you spend on public liability insurance. Notably, working with a licenced, experienced, and professional service provider reduces the chances of accidents. For example, hiring professional cleaning services reduces the risk of clients tripping and slipping on your business premises. Therefore, you should assess your business to ascertain the degree of risk exposure and find ways to reduce potential hazards before buying public liability insurance. It allows you to negotiate favourable policy terms with an insurer.
Types of Risks — The core nature of your business is an excellent indicator of the risks public liability insurance should cover. It is critical because the last thing you want is to cover risks that have a negligible possibility of occurrence. For instance, your PLI cover should include food poisoning if you operate in the restaurant segment. However, you do not need a food positioning cover if you manage rental properties. Some business owners think they only need to cover a few risks because they run small enterprises. While it might be the case, you still need the help of an insurance agent to identify all potential hazards likely to occur in your line of business or industry. It ensures adequate coverage and prevents paying for an insurance cover your business can do without.
Exclusions and Variations — A public liability insurance policy is not a one-size-fits-all cover, thanks to the increased demand for customised policies. While an insurer might have a standard public liability policy, they can vary it to meet customers' needs. Therefore, businesses must keep a close eye on any exclusions and variations in their proposed public liability insurance policy. Most importantly, let an insurer know if any of the exclusions in the policy will impact your business operations. For instance, an insurance policy might cover you against plumbing damage. However, the cover might exclude damages caused by non-compliance with building and plumbing standards.
For more information on public liability insurance, contact a professional near you.