Find out which businesses in India need public liability insurance the most 30th November 2022
Do you own a business and are undoubtful if you need to purchase a public liability insurance policy? This post will discuss why you should get public liability insurance, the advantages, and a list of businesses requiring it. It is advised to have a public liability insurance policy if you deal with members of the public or clients to ensure protection against damage to third-party.
Following are the businesses that are at risk of going bankrupt due to a single lawsuit if they don't invest in the public liability insurance policy:
1. Businesses that produce chemicals
2. Restaurants
3. Contractors
4. Hospitals
5. Universities and colleges
Let's first define public liability insurance policy before discussing these five businesses.
What is insurance for general culpability?
Public liability insurance protects businesses and their owners from being sued if someone gets hurt within their property or causes damage to someone else's property. This insurance pays for the damage costs, which otherwise the insured might have to pay.
For instance, if you host an event and a public member is harmed within your property, your public liability insurance will pay for any associated legal fees and compensation claims that the injured party may make.
What all is protected by public liability insurance:
• Property damage and physical harm
• Cost of counsel
• Cost of a claim
What is excluded from the policy:
• Reputational damage or another form of slander
• Accidents involving employees
You can purchase general liability insurance (GLI) if you want more protection. GLI protects a broader range of people, like business owners, employees, and vendors, from these risks.
Here are a few examples of firms that unquestionably require public liability insurance policy.
1. Businesses that produce chemicals:
After the Bhopal disaster in 1984, the government required any company working in a dangerous area to have public liability insurance. The Public Liability Insurance Act of 1991 requires you to purchase PLI coverage to protect yourself from lawsuits arising from accidents and harm to the public.
2. Restaurants:
A necessary component of any restaurant business is public liability insurance. PLI safeguards eateries from the expenses associated with damages. Accidental hot food spills, cutlery that falls, and slick floors are possible scenarios. It also protects the business if a customer claims damages because they got sick from the food.
3. Business owners:
If you do construction, plumbing, or electrical work on a client's property as part of your business, you must have public liability insurance. While working there, the insurance will defend you from any claims against you for injuries to individuals or damage to the customer's property or equipment.
4. Hospitals:
Hospitals are another business that could be sued for injuries or damage to property that happens while doing business. Any harm or death caused due to the doctor's negligence in this situation is not covered by PLI. For such a risk, doctors need professional indemnity insurance coverage.
5. Colleges and universities:
If a fire breaks out on the grounds of your school or college and a few students are hurt, PLI will pay for the cost of legal defense and any compensation demanded by the injured students or their families.
We've talked about a few specific businesses that require public liability insurance, but this is a partial list. Public liability insurance is a requirement if your business interacts with customers, staff, or the public.
Finding a good insurance company and the best coverage for your business takes time, consistent efforts, and deep research. Once you've decided, you'll have an insurance agent to offer advice based on his knowledge and experience. Nowadays, things have become digital, and you can easily buy a public liability insurance policy online with just a few clicks and a hassle-free payment process. It is recommended to always seek legal advice to find the best solution based on your situation.
Click HERE to buy a reliable public liability insurance policy in India.
Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.