A Business Guide for Public Liability Insurance Cover

3rd June 2010

What

is a Public Liability Insurance Cover?

This insurance cover is necessary if

members of the public, clients or customers visit your business premises. Even

if you run a home-business where customers are required to visit you to your

home, an insurance of this type might be a good idea.

What

does this insurance policy cover?

This policy will cover you if a customer,

client or a member of the public is accidentally injured by you or any other

person of your company in the premises where your business is conducted. The

cover will include any legal fees and/or expenses which result from any claim

made by a third party.

A Public Liability Insurance Cover will

only handle third party claims. It is important that your insurance agent is

well-informed on the type of business you manage. In the event any changes take

place in the concept of your business, you need to bring it to the immediate

attention of your insurer as this change can affect your policy as well.

To help you further understand the concept

of this policy, we give below two examples of claims it covers:

Examples:

  1. You run a grocery store. A customer calls over to buy some

    grocery and trips over a loose bit of flooring in your shop, and hurts herself.

    Public liability insurance will cover your business if the customer claims

    for injuries which she sustained as a result of the broken floor.

  2. You are a self-employed computer technician. During a site

    visit, you accidentally knock over a cup of coffee and the contents spill

    over the back of the computer and the entire system gets corrupt. Your

    Public Liability Insurance Cover will meet the claim from the customer.

How

much cover does a business need?

This depends on the concept and the size of

your business. Many small businesses opt for a 1 million cover. Even though

this may sound a lot, it is reasonable in case you have several claims against

you. Even though the cover may be high, annual premiums remain much lower.

How

do you get a quote?

Public Liability is one of the most common

policies which is taken out by small businesses, thus, you should be able to

find a competitive quote.

Today, you have a choice between offline

and online insurers. Using online insurance agents is advantageous. You can select

a couple of websites and fill in the form which calls for some basic

information about your business. This will take only a few minutes. On receipt

of this form, the insurer will revert back to you with a quote. Once you have

received a couple of quotes from these sites, you can easily study them over

and select the best Public Liability Insurance Cover.

Before you place your signature on a quote,

make sure your have studied the entire proposal well, especially whether all

areas of your business has been covered. You need to make sure so that none of your

claims will be rejected by the insurer. Since businesses differ from each

other, the respective insurance policy too should be customised accordingly.