Business organisations not only have moral responsibility for the product it sells in the market, but also a legal responsibility. Therefore, organisations opt for commercial insurance. With the help of a commercial insurance plan, the financial impact of the liabilities can be mitigated.
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What is public liability insurance?
A specialised type of commercial insurance policy that can be used against legal liabilities is a public liability insurance. Under this insurance policy, the costs of bodily injury, property damage or an advertising injury is covered by the insurance policy. This insurance plan is ideal not only for business entities that are not only involved in the sale of goods but also of rendering services. The injury may be either caused to any third party due to routine business operations like sale of goods or services. Thus, any third-party liabilities having a legal implication on the business are covered under the public liability insurance cover.
Which entities must purchase a public liability insurance cover?
Public liability insurance is not limited for a specific type of entity but, in fact, to all organisations engaged in sale of goods or services. It is specifically designed to ensure protection against legal liabilities causing injury to third parties. For organisation like hospitals, business processing units, medical professionals, chartered analysts, businesses rendering financial services, construction activities, warehouse and storage facilities, manufacturing organisations, educational institutions, research institutions and laboratories, non-industrial and non-manufacturing units are some of which that are recommended to invest in a public liability insurance.
In addition to the above types of businesses, if your organisation deals with clients on a frequent basis, be it for rendering services or supplying goods, it is wise to purchase a public liability cover. Also, if your business requires using the assets of the clients for rendering service, it is advisable to buy one. An example would be IT professionals providing business solutions. Further, if you represent your clients in some way, a public liability insurance cover will help you safeguard your financial interest.
How does a public liability insurance cover benefit?
A public liability policy offers the following list of benefits –
Protection against bodily injury: With the help of a liability insurance for public coverage, any third-party visiting your office premise if happens suffer bodily injuries, is covered under the insurance scope.
Property damage: Damages caused to third party property is included by the insurance cover.
Personal injury: For any charges made against the business organisation for negligence or other forms of personal injury to third person, the policy extends its coverage.
Advertising rights: Any advertising by your organisation if violates the copyright or trademark of a different entity, the cost of legal recourse is covered by this general insurance policy.
Lawsuits, investigations and settlements: The legal cost of any lawsuit filed against your business organisation are covered by the insurer in a public liability insurance plan.
To conclude, if your organisation interacts with the customers in some way, you must have a public liability cover. Any legal claim can dwindle your finances if a compensation is required to be paid. Keeping the above points in mind, get an insurance for any liabilities made towards your organisation. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.