What is public liability insurance

Understanding Public Liability Insurance

When you manage a business, the right insurance coverage will protect your assets and help limit your liability. In fact, liability coverage is required in most locations. For some companies, that requirement can be met by securing public liability insurance (PLI). Before you proceed with this type of policy, you should understand exactly what it covers. Here we offer some answers to the question “What is public liability insurance?”.

The Basics of Public Liability Insurance

PLI is a basic policy that often meets the minimum requirements for business coverage. It will pay for injuries to or damages incurred by members of the public while they are on your business property. If you are engaged in any retail operations, this is a starting point for protecting yourself against claims made by the public.

How PLI Is Different From General Liability Insurance

In contrast, general liability also provides coverage for employees, vendors, business owner(s) and corporate officers. Claims that result from negligence, workplace accidents, and defective products are all covered. Medical and legal costs may also be covered under a general liability policy. Premiums for PLI policies are generally less expensive, making them a common choice for smaller businesses.

PLI can provide affordable liability protection for your business. However, whether it is the right insurance coverage for your business will depend on several factors. Your operating model, budget and the amount of risk you are comfortable assuming will all factor into your decision.