PUBLIC LIABILITY INSURANCE

MEANING OF PUBLIC LIABILITY INSURANCE

Public liability insurance is a class of insurance policy that covers and affords protection against damages and injuries done to third parties and/or their businesses. These damages include deaths, personal injuries and loss or damage to property.

These damages may include costs of legal actions incurred by third parties in seeking redress against you for the damages or injuries done to their properties or themselves. The level of coverage for public liability insurance ranges from one insurance company to another. That is to say, it depends on the insurance company in question. However, most insurance companies undertake to cover damages and injuries arising from your business premises. And as well as ones that occur outside your business premises. For instance, at events organized by your business.

WHEN TO CONSIDER PUBLIC LIABILITY POLICY

There is wide range of persons who should consider buying a public liability insurance policy and these include;

1. One who runs a business at home and the public visit your house for businesses
2. If you own a business outside your home that members of the public come for businesses
3. If your business or businesses organizes outside activities where members of the public attend.

In all, public liability insurance policy covers every members of the public apart your employees, students, temporary staff or students. With respect to your employees, the sort of insurance policy deserving of their status is EMPLOYERS LIABILITY INSURANCE.

Employers’ liability insurance protects you against the costs and compensation available to your employees for damages or injuries sustained at your work place or those who get ill working for you. In this regard, it is only businesses with no employees or family businesses whose only employees are family members that enjoy exemption from buying employers insurance. Therefore, employers liability insurance cover insurance claims brought by your permanent employees, contract employees, and labor-only sub contractors.

COST OF PREMIUM

There is no certain amount of premium for buying public liability insurance. However, the amount of premium is highly dependent on the under listed factors;

1. The number of persons at your employ
2. The nature of your business
3. The history of your insurance claims

The factors highlighted above determine the pricing the insurance companies place premiums in your policy. These factors will determine your likelihood of making a claim and the enormity of the claim. Worthy of consideration is the risk associated with the objects of your insurance cover- the nature of your business. In other word, to determine your likelihood of making a claim, the insurances company assesses the risks associated with the nature of your business. It will equally encompass your arrangements to deal with the risks and the consequences of failure.

For instance, the consideration for premium in employers liability insurance is in accordance with the probability of your employees sustaining injuries of falling sick or your level of negligence. And same applies to other categories of insurance plans.

TYPES OF PUBLIC LIABILITY CLAIM

RENTAL PROPERTY CLAIMS.

This is a type of public liability claim available to you against your landlord. It stems from injuries or damages you sustain as a result of his negligence. In this sense, your landlord who provides you with public insurance cover as part of their building and content cover will provide you with compensation or financial indemnity in the event you sustain injuries or damages as a result of his negligence

BUISINESS PREMISES PUBLIC LIABILITY CLAIM

Owners of business premises owe the duty of care to members of the public. These business premises could be a shopping mall, a supermarket or other business environments. If these duties of care are breached by these businesses, then, you are eligible for indemnity from them.

Injuries from these places may occur as a result of falls as a result of water or other spillages, slips and associated causes which were negligently ignored by the owners of the business premises.

FAULTY PRODUCTS LIABILITY CLAIM

This is a public liability claim available against producers, building engineers and sundry businesses. These liabilities arise from production of faulty products. For instance, electrical fire as a result of poorly electrical items or gadgets, which has a potentiality of causing a serious damage to properties and businesses. And when these damages arises thereof, you are eligible to make claims under public liability insurance against such manufacturers.

PUBLIC PLACES LIABILITY CLAIM

These are claims you make as a result of damages sustained in public places. These places may include concerts, game parks etc. therefore, if you sustain injuries in these places, you can file for claims against the organizer or owners of such places for their liability in negligence.

TYPES

There are different types of public liability insurance and we shall discuss some of these here.

COMMERCIAL FRAUD PUBLIC LIABILITY INSURANCE

This is the sort claims available to third parties from business owners as a result of fraud or employee fidelity. This class of insurance policy affords protection to businesses against claims from third parties arising from robbery, employee infidelity, cyber fraud, forgery or even burglary.

PROFESSIONAL LIABILITY POLICY.

This is the type of public liability insurance that affords protection or indemnity to businesses or individuals who render professional services to clients. It covers claims made by clients for their mistakes and negligence.

COMMERCIAL GENERAL LIABILITY INSRANCE.

This affords protection to businesses against the claims arising out of bodily injury and damages to properties as a result of bad premises, products, operations etc. most of these claims arises out of personal injuries and adverts.

DIRECTORS AND OFICERS PUBLIC LIABILITY PLAN

This is the type of public liability insurance that cover directors and officers of a business against claims made by competitors, employees, customers, shareholders etc.

PRODUCT PUBLIC LIABILITY PLAN

This covers business owners and manufacturers against the claims emanating from the goods they produce or the services they render. These damages may arise due to personal injury or damage to property due to products and services of the insured business of manufacturer.