Understanding Public Liability Insurance

U.S. Risk: Understanding Public Liability Insurance

No matter how much you invest in a company’s products or physical working location to be safe and reliable, an accident can happen to jeopardize the safety of your consumers and your company’s reputation. A customer might be injured by a falling sign or a product might experience a defect that injures the user. Public liability concerns are addressed through a PLI insurance policy. These are written to cover damages or injuries that may be suffered by third parties who are visiting your business property.

Coverage Potential

When compared to what a commercial general liability policy can offer, the advisors at U.S. Risk confirm that there are many similarities with regard to protections in these situations. However, general liability policies are usually more comprehensive in coverage. A PLI policy applies only for accidents, injuries, and property loss incidents that involve members of the public who are visiting your premises. This could be customers, vendors, or employee visitors. If your company doesn’t have many visitors, then you may want to invest in more comprehensive commercial general liability coverage.

Cost Savings

A PLI policy is limited to third part incidents, while commercial liability is more comprehensive. Because of this, public liability has a cheaper premium. It is a good first coverage option if your business is smaller and you can’t afford the additional areas of protection from a commercial policy.