Public Liability Insurance
What's Public Liability Insurance
Your company might be harbored in a beautiful well-designed architecture that can withstand earthquake damage. Also, you would have chosen the best location before constructing your office building structure. For instance, a place safe from Landslides. Everything seems to be well organized for some time. But what if there’s an unforseen, uncontrollable disaster like that of the fatal tragedy in Bhopal, 1991?
Let’s recall the incident of gas leakage at Union Carbide India Limited pesticide plant. The entire town and nearby areas were exposed to the hazardous Methyl Isocyanate, taking over 16,000 lives with over 5 lac non-fatal injuries. This is considered the worst industrial disaster on the planet. Consequently, the government enforced the Public Liability Insurance (PLI) Act, 1991, with a policy that required business owners to insure against possible personal injury and property destruction in the communities around. This act intended to provide relief instantly to people affected by mishaps while handling hazardous materials.
This act makes sure that there’s a no-fault liability against the owners. That is to say, the owner of the hazardous materials should have insured so anyone injured or died could claim compensation, without penalizing the owner.
Whether you own any business or are self-employed, don’t forget that there are risks involved at work that might cause personal injury or property destruction. A lot of blood, sweat, and tears would have gone into building a rock-hard financial footing with which you would have established your dream company. Accidents and crisis do occur, and if you are not insured to an acceptable extent, you’ll be in a financial disaster. You need insurance to safeguard your company from such risks. As you assess the potential gaps in your insurance coverage, you might consider which policy is to be chosen to include in your short- and long-term financial plan. PLI covers the costs of protecting your company from lawsuits and payments of claims by a person in public. This includes bodily injury and property destruction.
The following are some of the risks involved when your company comes in contact with the general public frequently:
- Injury to one of your clients when he or she sits on a chair, and the chair collapses
- Someone passes by your office, and your signboard falls on them, leading to injury.
- Someone is injured in an event organized by your company.
What Doesn't PLI Cover?
Accidents that you encounter as the company proprietor while performing your business activities. You need to take separate personal insurance or General Liability Insurance (GLI) if you want this coverage. Accidents or injuries to your staff while they’re working for you, at your workplace, or somewhere else, including driving for business intent. The coverage for accidents and injuries is included in the worker’s compensation insurance that all employees should have mandatorily have.
Costs to defend the defamation charges against you or your company. This insurance is covered in General Liability Coverage (GLC). This also includes false statements given by company representatives or by the company (For instance, false statements given in advertising materials).
Costs for professional liability lawsuits, at times known as errors & admissions or malpractices. The Malpractice Insurance is generally for health care professionals, whereas errors & admissions insurance is for general professionals. Such cases are brought against professionals for their actions, including doctors, CPAs (Certified Public Accountant)s, architects, and chiropractors. Professionals require malpractice insurance that covers these claims.
How to get the best policy
Find a specialized industrial insurance policy provider
You must deal with specialists. Since specialized insurance companies that deal with Public Liability Insurance can give you a comprehensive solution. You need to search for one skilled insurance service provider.
Run a comparison study
You can find several sites offering you information about the various insurance providers, their policies and reviews. By running a comparison study, you can easily find an insurance company that is right for your needs and requirements.
Seek professional help
It would be advisable to find professional help to understand the policy, because, at times, it can be too technical for you to understand, and a person who is expert in the insurance business can help you in spotting the right kind of policy for your business. The insurance expert can make you understand the legal terms associated with the policies.
Read the terms and conditions carefully
You should read the terms and conditions. For instance, you need to know about the social exclusions, the add-ons of the policy, and more. Hence, take out some time and read the terms and condition carefully before buying the insurance plan.
Never let the business be vulnerable to the unpredictability of nature and happenings. You can keep everything under control by availing the best Public Liability Insurance Policy for your business and act with a sense of urgency when things go wrong without prior notice. So, stay safe.