Being self-employed or owning a business invariably brings risks. Corporations and limited liability companies (LLCs) have limits on the liability of their business, but these limits don’t prevent someone from filing a lawsuit against your business in other circumstances. Understanding the different kinds of insurance available is crucial for any business owner, all the more so if you are operating your business abroad. Public Liability Insurance covers the costs of defending your business during a lawsuit and payments of claims by a member of the public.
Who needs public liability insurance?
Public liability insurance is important if your business comes into contact with the general public on a regular basis. Business is open to potential lawsuits if someone is injured on business property or at a business event. Not every business needs public liability insurance, but it is recommended if your workplace could potentially cause injury or damage to someone, for example:
- If customers visit your place of business regularly such as a retail shop, restaurant, clinic or salon
- If you work at clients’ businesses or private homes as a contractor or tradesman
- If you work in public places as an entertainer or in the construction industry
What is covered?
Public liability insurance protects your business against compensation claims and their legal costs if you cause injury (or death) to a third party or damage to their property.
- Bodily Injury Public Liability insurance protects against the risk of someone being injured on your business’ premises. This coverage usually includes areas outside the actual business like sidewalks and parking lots.
- Property damage coverage includes protection of the business from damage to someone else’s property while they are on that property or while you are doing work. For example, if a carpenter is working on a customer’s home and breaks a window, that damage would be covered.
Public liability insurance covers legal costs incurred in the course of defending claims made by members of the public and pays compensation if your business is found to be at fault.
What It Doesn’t Cover
Public Liability Insurance does not cover everything. It is important to understand that a business may need additional insurance, for example, it does not cover
- Accidents that happen to you, as the business owner, during the course of regular business activities. You will need your own personal insurance or general liability insurance.
- Accidents or injuries to your employees while they are working for you, at your business location, or elsewhere, including driving for business purposes.
Takeaway
Although Public Liability insurance is not legally mandated, without it your business will remain at risk of financial devastation in the event of a claim by a member of the public. Public liability insurance protects your company from lawsuits in situations involving bodily injury or property damage sustained in the course of doing business. Speak to trusted insurance who is familiar with ex-pat insurance needs, like Trusted Union. adviser about your public liability risks to get the information you need to make a smart and informed decision
