What is public liability
Public liability insurance is considered a must-have for many business owners. It protects you if someone sues you for personal injury, death, damage to their property, or advertising injury. If you don't have public liability insurance, the resulting compensation payouts and legal costs can potentially cripple your business.
As a small business owner, you want to win friends and influence people. You don't intend or expect to injure someone or damage their property in the course of doing business. However, even a simple event can trigger a public liability case against your business. If you’re a motor mechanic, for example, public liability insurance can provide protection if:
A customer trips over a tool on the workshop floor and fractures their wrist.
A bicycle courier slips on a patch of oil and sprains their ankle.
An employee damages the paintwork on a customer’s car with a tool trolley.
How do you advertise your business?
Given the ease of using the internet as a relatively inexpensive form of advertising, there’s more chance of advertising liability. Advertising injuries include libel, slander, invasion of privacy, copyright infringement and misappropriation of advertising ideas, which can result in a business being sued. Public liability insurance may cover some or all of these events – check your policy for details.
It stands to reason, then, that public liability insurance can help small business owners prepare for the worst. Not covering the possibility of having to pay for damage that you, your employees, or your business unwittingly cause to other people or their property is a hefty risk to take.