What is Public Liability Insurance

Regardless of what country you are from or where you live one thing that most people have in common is that they are aware of the need for insurance.  Insurance comes in many forms including motor, health, and life insurance.  While these are the most well known forms of insurance, there are also many other types of insurance that are just as important.  For a business owner one of the most vital forms of insurance is public liability insurance.  Even though it may not be something that you are familiar with, if you own a business it is something you will need to purchase in order to protect your best interests.

The purpose of public liability insurance is to protect your company from legal action, because if someone were injured, killed, or contracting a disease as a result of your business practices then the insurance would pay any financial damages that were won in court.  In addition, if you hold liability insurance the agent will also pay all legal fees associated with the lawsuit.  Therefore it is easy to see how valuable this could be since legal charges alone can add up to thousands of dollars and if the claimant wins damages can add up into the millions in some cases.

The essential reason to take on a public liability insurance policy is to make sure that your business finances are protected at all times if a court case is filed by a 3rd party that claims they suffered a loss or were injured at your business place.  While you cannot avoid the situation, you can avoid your business falling into bankruptcy due to a high cost lawsuit against you.  When you counter bankruptcy against the price of a monthly premium for public liability insurance, it is easy to see which the best value is.

It is important to understand that public liability insurance is necessary for all businesses because accidents do not always occur within the building premises.  If something were to happen in public that was the result of your company’s actions you could also be held liable, and if something were to occur inside the home of someone that you visited on a business call you will be held liable.  Therefore, there is no business that is exempt from liability making it a practical choice to keep your public liability insurance cover active at all times regardless of business type.

Article for Directlineforbusiness.co.uk