Public Liability Insurance - The Extra Mile in Social Responsibility

2007-03-08 10:33:40

( Insurance )



It always happens when you least expect it. A customer slips and falls on the floor of your store. Or your construction crew leaves a can of paint which spills all over the carpeting of your client's office site. Or one of your employees gets stuck in your office elevator due to power outages and suffers shock as a result.

Though they happen by accident, you are legally responsible because the law assumes that the incidents happened due to your own negligence. It doesn't matter whether you had directly or indirectly caused the incident, or if you were conscious of any negligence on your part.

The Need for Public Liability Insurance

This type of insurance is designed to cover any claim for injuries or damages from your business's customers, employees and the general public. The injury or damage must have occurred while the party was at your premises, or while you were rendering services or other transactions representing your company at another location. Public liability insurance also covers any legal expenses, costs of medical treatments, and repairs related to the occurrence.

In fact, local and state regulations do require some businesses to have this type of cover, especially for those located in sensitive areas or involve large volumes of people (such as entertainment centers).

How to Acquire Public Liability Insurance

You may apply for public liability insurance in person or through online sites. You can also choose to apply through a broker or directly with the insurer.

The insurance company will compute your premium using a book rating based on estimated risks and nature of your business, as well as a history of any past claims you have made. He may also use an industry average of adverse incidents that have happened to other companies similar to yours.

The insurer recommends the amount of coverage, gives the liability insurance quote, and offers several alternatives that you can choose from.

Making the Most of Public Liability Insurance

Today's empowered and lawsuit-happy society makes public liability insurance a prerequisite for operating a business.

The cost of insuring can be pretty high but you can find several ways to reduce it. Big offices with many people coming in and out will generally mean higher premiums. The size of the premium also increases in direct proportion to the number of claims you make.

You might consider reducing the size of your office premises, or by going online to reduce the amount of client risk. Consider installing safety features such as anti-slip carpets, fire extinguishers (more than the required number), built-in alarms, and safer types of building materials. Try joining an industry association if there is one for your type of business, or the local chamber of commerce, who may be able to negotiate lower liability insurance quotes.

And always remember that liability insurance is an asset as it gives your business a positive image of being socially responsible.


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