A successfully run business is always under the presupposition that things can and will go awry at some point. The list of things that can go wrong is far too great to go through here and it is specific to your industry. The term used to encompass this entire list is called liability. There are two types of liability insurances relevant to us. There are the public and general insurance plans. These plans are designed to protect us from various unpredictable costs and much more. A simple comparison between the two would be that public liability insurance covers injuries suffered by visitors to our business property. And the general liability covers a greater area by including visitor and employee injuries, and defective-product damages. Here, we will go into more detail about the differences between the two.
1. Pricing
The first big difference between the general and public liability insurance plans is the cost associated with both. The former is quite often much more expensive than the latter. General liability insurance will cover all that may occur within general business operations. These include, but are not limited to, catastrophic events, bodily injuries, copyright infringements, product liability, personal injury, etc. The list of potential mishaps covered is much greater than what public liability insurance offers. This extended range often means too much insurance and too great a price to pay for small and medium businesses. This reason, solely, can make the public liability insurance a better option for smaller companies. The premiums it offers can be very low, especially compared to the benefits and peace of mind it brings.
2. Limitations
General liability insurance is limited in the items it does not cover. Worker’s compensation and professional liability is just a couple of cases. As mentioned previously, the great price can also be considered as a limitation by some. Smaller companies are being kept from affording it. On the other hand, public liability insurances can seem to be overdoing it. They do not cover businesses against employees, investor, and vendor claims. Additional insurances need to be purchased to cover these cases. Businesses also might need to cover some of the additional expenses associated with claims. There are limitations on expenses in general, and those are common with public liability insurances.
3. A case for public liability insurance
As touched upon previously, PLI coverage applies only to injuries, accidents and property loss. These are valid only if it was suffered by members of the public on our business premises. This includes customers, visitors, and delivery personnel. If we are not in the kind of industry, where masses of people frequent our establishments, then public liability insurance is not for us. On the other side, retail, restaurants, or white-collar companies, all see their customers regularly at the business premises. These types of establishments and many more, will find public liability insurance a necessity. Yes, it does cover less ground compared to general liability insurance, which makes it cheaper. For a small business in its infancy, and/or a company on a budget, it makes a great starting point. At least until the point we can afford something with a broader scope. Being well informed on the limitations of a public liability insurance is crucial for making the most of it.
4. A case for General liability insurance
GLI has a lot more costs associated with it, compared to PLI. Usually, these costs render smaller to medium sized businesses unable to afford it. But for those that can, general liability insurance offers much more protection. GLI insures a wider range of people against injuries suffered on company grounds. These include vendors, employees and business owners. But it also covers mishaps that have arisen off-premises. Bodily injuries and property damages are covered even outside the company, if caused by the services, operations or products. When it comes to employees, designated work compensation lawyers will be involved to mediate the potential situation. Next, “advertising injury” covers against the damages if we accidentally infringe of copyright grounds. If someone sues and collects, these costs are covered by GLI. Also, it covers the so-called “personal injury”, not to be mistaken with bodily injury. If someone related to our company is wrongfully evicted, maliciously prosecuted, detained or falsely put into arrest, the expenses are covered.
To sum it up, public liability insurances are often more common and more affordable for most businesses. It will protect small and medium sizes companies, that do make the majority of the global market, from bankruptcy. Third party liability cases are covered which will ease the mind of all business owners and make them focus on the customers. If we have greater concerns regarding our business, and finances to spend, then global liability insurance is the right call. It will offer a wider safety net for anyone that has an objective need for it.
