What is Public Liability Insurance?

Public Liability Insurance is one of the most important types of insurance for businesses and their employees. It provides protection against claims for injuries or damages caused by the negligence of the policyholder – aka you and your business.

Why is it Important?

Simple. It protects a business against financial ruin in the event of a large claim.

Who Needs Public Liability Insurance?

Any company that deals with the public or other buinesses. There are a number of different situations in which you wouldn't want to be caught without this type of cover, such as if someone were to get injured on your premises or at an event as a result of your negligence.

When is Public Liability Insurance Compulsory?

While it is not a legal requirement, in many situations it is a busines necessity. For example, most shopping centres will not allow businesses to trade without proof of Public Liability Insurance. It's also often a condition of tender for many government contracts.

Compare Public Liability Cover from South African Business Insurance Providers

Generally speaking, the larger and more complex the business, the more expensive the cover will be. This is because there is a greater chance that something could go wrong and you could be held liable for damages. Similarly, businesses that operate in industries with a higher risk of accidents or injury (such as construction or manufacturing) will also generally pay more for their insurance.

The amount of cover you need is another factor that will affect the cost. The more comprehensive the coverage, the higher the premium will be. Finally, the excess you are willing to pay is another cost to consider. A higher excess will usually mean a lower premium, but it's important to make sure that you can afford to pay the excess if you do need to make a claim.

What Does it Cover?

This type of insurance can help cover the cost of legal fees, medical bills, settlements and damages that may be awarded to a third party.

Does Public Liability Insurance Cover Personal Injury?

Yes, this type of Inurance is designed to cover these types of claims, but it's still important to check the details of your policy to see exactly what is covered. Some policies may have exclusions or limits on the amount of cover, so it's important to read the small print.

What About Employees?

Most policies will not cover claims made by employees of the business as these will be covered by workers' compensation insurance. However, some policies may provide coverage for certain types of claims, such as discrimination or wrongful termination.

Does Public Liability Insurance Cover Damage to Property?

Yes, it covers damage that your business causes to other people's property. This might include damage to their car, home or other possessions. It also covers any legal costs you might incur as a result of the damage, as well as theirs from defending the claim.

What About Accidental Damage?

Yes, it will cover accidental damage if you are found to be at fault for an accident. But it does not cover you for any intentional damage that you or your employees may cause.