Triple Trouble: Why You Need Insurance To Counter Bad Luck

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Triple Trouble: Why You Need Insurance To Counter Bad Luck

In her novel "Starcrossed: Pedigree" one of Tracey Lee Campbell's characters says, “Can you imagine what I’m going to have to write on the insurance claim form? Attacked by aliens and blood sucking vampire things.” Whilst I've never had to claim for an alien attack, a string of incidents means that I have recently made a few insurance claims for my family. First, my son lost his expensive camera overseas. Then, my husband broke his arm. Lastly, my downstairs freezer stopped working and hundreds of dollars worth of food defrosted. They do say trouble comes in threes! One of my neighbours commented that she probably wouldn't cope financially if she'd had my bad luck. I went through my insurance policies with her and she was really inspired. She suggested that other people might be able to use my accumulated insurance knowledge. I hope my blog is helpful. Please browse.

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Key Questions to Ask Before Buying Public Liability Insurance (PLI)

Business risks come in all shapes and forms, whether you are running a construction firm or a restaurant. Therefore, you must do all you can to mitigate risks, and public liability insurance is one way of doing it. Ideally, public liability insurance (PLI) protects a business from financial losses resulting from claims made by members of the public. For instance, if a customer trips on the staircase in your restaurant and injures themselves, they have every right to file for compensation. A PLI covers the legal costs and the compensation resulting from claims. However, you should ask the right questions before buying a PLI policy. 

Is Public Liability Insurance a Legal Requirement?

Unlike other insurance policies, such as workers' compensation, general business liability and employer's liability, PLI is not a legal requirement. It means that you can opt-out without any legal penalty. However, many businesses that do not have a PLI policy end up regretting their decision because accidents are unforeseeable. If a member of the public successfully files a claim against you, you have to pay a hefty sum from the business accounts. Even if you win a case against a complainant, you still have to pay your legal fees. Therefore, while PLI is not a legal requirement, it is better to buy the policy.

How Much Public Liability Cover Do You Need?

Public liability insurance costs money, but the cost of premiums depends on the nature of your operations. For example, businesses whose operations pose a low risk to the public pay lower premiums. An excellent example is a company that operates from home. However, if your operations expose the public to higher risk levels, the chances of being sued are high. It means that you need to buy a more expensive public liability insurance policy.

Does the Policy Cover Everything You Do?

Businesses differ in their operations, which is worth keeping in mind when buying a PLI policy. The reason is that you do not want to leave anything to chance when dealing with potential accidents to the public. Thus, ensure that the PLI policy you take covers the range of services you offer. It means that PLI policies must be tailor-made to suit your protection needs. For instance, if you are a construction company and hire subcontractors, the insurance policy you buy should cover them and their workers. If you buy a policy that only covers your construction company's operations but leaves the subcontractors out, you might regret the decision. Overall, you should review your business operations when updating your PLI policy to ensure that it covers everything your company does. 


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