Public liability insurance is a cover that compensates third parties that get injured in your business premises. Third parties may include customers, suppliers, licensees or trespassers. It is an essential insurance policy if customers and suppliers visit your business premises or if you conduct works in your clients' properties. Below are some vital considerations to make as you take a public liability insurance cover.
Reduce Your Business Risk
Insurance companies will charge more if your business is exposed to many risks. As such, you should improve your business's safety standards to lower the premiums. For example, if you run a construction firm, you should have adequate safety equipment including scaffolds, personal protective equipment and barricades. If you have an office or retail space, you should avoid slippery floors, loose or faulty electrical fittings. Besides, your premises should have a certifier's occupation permit and a fire inspection certificate.
Determine An Appropriate Cover
Typically, you will require more coverage if your business is exposed to multiple risks or if you interact with many third parties. You should also check industry guidelines. For instance, some professional associations may ask members to take a specific amount of cover. Contractual obligations may also compel you to take a specific limit. It is especially so when working with commercial clients and the government.
Consider Reputable Insurance Companies
Conduct some research to determine reputable insurance companies. Some of your concerns should include:
- Is the company licenced to provide insurance services in your state? It may be challenging to get compensation if the company is not registered.
- Check the reputation of the company. Companies specialising in providing public liability insurance may have friendly terms and conditions.
- Inquire about the compensation process. Avoid insurance firms that have a complicated claims processing process.
- The company should have a friendly customer service department that sends regular updates and reviews on your insurance policy.
Check the insurance coverage. Most policies will cover third party injuries such as slips and fire burns. Besides, they also include third party property damage. However, you will not receive compensation you or your employees suffered injuries during the accident.
Combine a Few Covers
Some insurance companies will combine public liability insurance with other covers such as general liability, professional liability and business interruption insurance. It is a sure way to reduce the premiums you pay for your various insurance policies.
Remember to update your cover to suit changing business conditions. For instance, you may need to adjust the coverage if you move into larger or smaller premises.
When taking public liability insurance, determine an appropriate cover, consider reputable insurance companies and combine a few covers.
For more tips on public liability insurance, reach out to a local insurance provider.
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