Is it compulsory to purchase public liability insurance 27th February 2023
Public liability insurance shields policyholders from lawsuits brought by third parties for their injuries, damaged property, or other damages due to the insured's negligence. Many people, particularly owners of small businesses, are still determining whether getting public liability insurance is required. We'll look into the answer to that question in this blog post.
General liability insurance may, however, be mandated by law as part of the licensing or registration requirements for specific businesses or professions. Let's dive deeper and understand why purchasing public liability insurance would be better for you.
Reason 1:
It is strongly advised that you consider getting public liability insurance even if your profession or industry does not mandate it. This is because accidents can occur at any time and can be highly expensive to handle. For instance, you can be responsible for paying a customer's medical bills, lost earnings, and other damages if they slip and fall on your property. You would have to cover these expenses out of your pocket if you didn't have public liability insurance, which might be extremely expensive.
Reason 2:
Public liability insurance helps shield your and your brand's reputation. If a client or a public member is hurt or loses something due to your company's negligence, it could hurt your reputation and generate bad press. By having public liability insurance, you can show your clients that you care about their security and well-being and that you have the resources necessary to cope with any mishaps that might happen.
What should be considered while purchasing public liability insurance?
1. The amount of coverage you require should be carefully considered before buying public liability insurance. The level of risk involved and the kind and size of your organisation will determine how much coverage is necessary. For instance, a tiny home-based firm would need essential protection. In contrast, a larger company with many employees and risky operations might need higher security.
2. To make sure you know what is and isn't covered, it is also crucial to carefully read the terms and conditions of your public liability insurance policy. Before acquiring insurance, it's critical to be informed of any exclusions or coverage restrictions that might apply. Although you will depend on the insurance provider to cover any potential claims, ensuring they have a solid reputation and sound financial position is also crucial. Therefore, when buying public liability insurance, it's vital to carefully examine the degree of protection you require, review the policy's terms and conditions, and select a reputed and financially sound insurance provider.
3. Cost should be considered when selecting public liability insurance. The price of public liability insurance will change depending on the level of protection needed, the size and type of your business, and the insurance provider you select. Even if cost is a crucial element, it shouldn't be the only factor you consider. In addition to the protection, comparing the insurance cost to the possible costs of a claim or litigation is crucial.
In conclusion, even though many businesses do not think about acquiring public liability insurance, it is strongly advised that you consider doing so. Accidents can occur at any time, and if you don't have public liability insurance, you may be responsible for significant losses and costs.
Also, by acquiring public liability insurance India, you can show your clients that you care about their security and well-being and that you have the necessary resources to cope with any mishaps that may happen. Therefore, explore your options and purchase the best public liability insurance, which would cater to your organisation's and your client's needs in the best way and add the layer of security as required.
Click HERE to learn more about the benefits of purchasing public liability insurance 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.