A public liability insurance policy is one most frequently taken out by a business or organisation. It is a policy that is designed to cover a business or organisation in the event that a third party is injured or killed, and/or that person’s property is damaged. This type of policy covers members of the public, as well as workers who subsequently may have been injured on the premises.
There are obvious places where public liability insurance is a necessity. These include areas where many people gather at one time, such as sporting venues, concert venues, theatres, cinemas, shopping centres and markets, holiday resorts, pubs and clubs. As well as the insurance policy itself, businesses and organisations that deal with a large amount of people will still be expected to consider peoples’ safety in their actions. Typically, this will involve the installation of fire alarms and clear exits.
Another reason why public liability insurance is important in covering sporting venues and pubs and clubs, for instance, is not just down to the number of people in attendance. Some public places will sell alcohol and the possible risks of injury are consequently increased.
Risk can vary considerably from business to business. Any business that uses machinery will have more risk attached to it than a business that doesn’t. Chemical factories can be considered high risk, whereas an office should be a relatively safe environment. The reason why even many low risk business owners will still take out a public liability insurance policy is to give themselves peace of mind. The insurance policy covers both compensation and legal costs.
Workers who are employed by a business should be aware whether it has public liability insurance or not. Members of the public, who pay for work in their home, also need to be aware whether the business they are employing has public liability insurance or not. Should any damage be done to the family home at the fault of the business, then public liability insurance will cover compensation claims.
There are also other types of insurance that complement public liability insurance policies. These are employers’ liability insurance and professional indemnity insurance. Employers’ liability insurance is a legal requirement for employers and covers illness or accident. Professional indemnity insurance covers a wide variety of issues that may affect a business, including loss of documents or data, unintentional libel, slander, or breach of confidence, as well as general errors and negligence.