3 Public Liability Insurance Facts That Small Businesses Must Know

Accidents in a business premise can be costly in terms of injuries caused and possible litigation. Therefore, every company needs a public liability insurance policy regardless of its size. The policy protects your business from litigation costs and claimant medical bills. It also takes care of payments to plaintiffs if public liability claims are successful, cushioning your firm from the financial burden. Unfortunately, many small business owners do not know the fundamental aspects of public liability insurance policies. This article provides more insight into the insurance policy.

Unauthorised Access by Plaintiff

There is a misconception among most small businesses that public liability insurance only covers injuries to members of the public, who are within a premise legally. Therefore, if a person gains entry to a premise without management's permission and gets injured, most business owners believe that an insurance company should not pay any claims. However, it is not true because a public liability insurance policy covers injuries within your premises, whether an injured party is authorised or unauthorised to be within the property. The reason is that firms must take measures to make their properties safe for every member of the public.

Does Not Cover Employees

Another misconception that small businesses hold is that public liability insurance protects employees and proprietors. It might explain why some companies buy public liability insurance policies and not workers' compensation insurance. It usually happens with businesses that hire workers on short contracts because they are not considered employees. However, nothing could be further from the truth because public liability insurance policy does not cover business owners or employees, whether permanent or temporary. If you want a cover that protects your business against injury claims by employees, then buy a workers' compensation insurance policy.

Accidents Away From a Property

Most injuries covered under public liability insurance occur within a business premise. They include injuries such as staircase falls and trips, floor slips and falling objects, among others. However, did you know that your business could be liable for accidents that happen away from your property but have a direct connection with the premises? For example, if a maintenance crew fails to secure roof tiles properly and a piece flies off and hits a passer-by across the street, then your business is held liable. Some companies attempt to fight such claims arguing that since the injured party was not within their property, the company is not responsible. However, if an injury occurs across a street and evidence points to a negligent act, public liability insurance covers the compensations and litigation costs.