All Hong Kong businesses face everyday risks that must be managed using insurance products. At the heart of every insurance package or portfolio is Public Liability Insurance. Although many other types of covers are necessary to sufficiently transfer your risk, Public Liability is the one insurance policy that every business must carry.
What is public liability insurance?
Public Liability provides financial protection should a third party take legal action against your business as a result of alleged bodily injury or property damage suffered either at your business or another location. The policy will pay for defence costs, settlement costs, and settlement awarded by the court. Sometimes referred to as ‘slip and fall insurance’, it’s important to note that the policy covers property damage claims as well.
Who should carry public liability insurance?
Any business that interacts with the public in any manner should carry Public Liability insurance to protect their business from costs of damages for alleged bodily injuries or property damage on your premises or elsewhere. There are significant costs related to responding to a lawsuit even if it’s found to be without merit. Your Public Liability cover will pay to defend you and your business, whether you are liable or not.
What limit of insurance cover should I purchase?
We live in a litigious society, and because of this, it's best to purchase limits sufficient to cover your business. Your limit is the maximum amount your policy will pay for all costs associated with an action brought against you. If you purchase a low amount of cover, you may likely not have enough to pay for settlement costs and the defence costs. The good news is that the difference between a low limit policy and a higher limit policy is minimal compared to the additional benefit you will receive.
Although Public Liability is not always mandatory, without it your business will remain at risk of financial devastation in the event of a claim.
Speak to your Trusted Union insurance adviser about your public liability risks to get the information you need to make a smart and informed decision