Public Liability Insurance

We live in a very litigious society and you face the risk of being sued every single day. Many of these risks have to do with your business premises or the type of operations your business performs. To protect against this, it is recommended that most business carry Public Liability insurance.

What is Public Liability insurance?

Put simply, Public Liability insurance protects you if a 3rd party (a member of the public) sues your business alleging that your negligence caused them some type of bodily injury, death or property damage. The most common accident that can result in this type of claim is a ‘slip and fall’.

When you are subject to a legal action, you would notify your insurance company and they would appoint a lawyer to defend you and pay all costs and legal fees associated with the lawsuit. This includes any expenses that you incur in order to assist with the defense such as lost wages from missed work or transportation costs to get to and from court. On top of these supplementary costs, they would also pay for any judgements awarded by the courts against you up to but not exceeding your chosen limit of insurance.

That being said, not everything is covered. Things like pollution, contamination or damages due to breach of contract or professional duty would not be covered under this policy.

Why purchase Public Liability insurance?

If your business is frequented by members of the public, you would likely need this type of insurance.

For a lot of small to medium-sized businesses, the effect of needing to pay damages for bodily injury or property damage can have a severe impact on the financial bottom line of the business and the owner(s). Damages awarded in recent years have been so big that it could potentially bankrupt you. With these types of stakes on the line, it makes sense to pay a manageable monthly premium in order to stave off a potentially catastrophic event.

Many business owners also mistakenly believe that if they are careful, they don’t need liability insurance because they will ultimately win in court and be able to recover the money they spent. The problem with this line of thinking is that lawsuits can be expensive. There is also no guarantee that you will win and the cost of defending yourself might be too much for your business to handle.

How much does it cost?

As with most commercial insurance policies, premiums are determined based on the type of business you run and the limit of insurance you choose.

As you can imagine, a restaurant with table-side flambé service would probably pay a higher premium than an advertising agency where they occasionally take client meetings in the boardroom. For a more detailed quote, contact us.