Do you currently run your own business and you already have a bunch of other types of insurance policies and someone recommended that you get public liability insurance? The question on your mind will naturally be “What is public liability insurance and why would I need it?”

Also known as PLI, this particular type of insurance policy is the type that will cover any type of risk of liability that a company may have to pay a client or customer if he or she sustains an injury while they are on the company’s premises. PLI will also cover the risk if a business also causes damage to a customer’s or client’s property. In addition to this, PLI also compensates business owners for legal fees while they are defending their business due to claims. This insurance policy is particularly vital because even if the court does not grant damages, business owners will still need to pay colossal legal charges, no thanks to outrageous claims.

What is public liability insurance and is it mandatory? This is the question that many new business owners ask. PLI is necessary for your business because whether you choose to believe it or not, no person can run a business that does not come with its fair share of risks. Most times, a lot of small businesses do not pay any mind to the glaring risk factors that are associated with their type of business. As a business owner, it is your responsibility and lawful obligation to pay compensation to the client or customer for any damage to their property due to negligence on the part of your business. There are times, when claims can go as high or even over one million dollars! So, it is important that business owners buy insurance because their business could be just one claim away from losing everything.

For instance, a good example of how important it is to have a public liability insurance policy would be when you or your staff were at working at construction site and a passerby trips on a piece of wood, steps on a rusty nail or suffered an injury when a heavy object falls on his or her as a result of your staff’s negligence. You will be responsible for paying the claims. These are only a couple of examples that simply show the importance of PLI to small and large businesses. It is vital that business owners know that they are endless possibilities of causes for claims. So, the best thing to do for your business is to buy insurance and have some peace of mind and focus on building your business.


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