Public Liability Insurance: What It Is, How Much It Costs, and How to Get It

Public liability insurance is an important type of insurance for small businesses. This type of policy covers you if someone is injured or their property is damaged as a result of your business activities.

Public liability insurance is important for businesses of all sizes.

In this blog post, we will discuss what public liability insurance is, how much it costs, and how to get it. We will also look at some examples of when this type of insurance would be beneficial for your small business.

What is public liability insurance?

Public liability insurance is a type of insurance that protects you from the financial risk of being sued for damages if someone is injured or their property is damaged as a result of your business activities.

This type of policy can cover the cost of legal fees, settlements, and medical expenses if you are found liable.

How much is public liability insurance?

The cost of public liability insurance will vary depending on the size and type of your business, as well as the amount of coverage you need. Generally, small businesses can expect to pay between R800 and R5,000 per month for this type of insurance.

What is Excluded in a Public Liability Insurance?

Most public liability insurance policies will exclude any damage that is caused intentionally or as a result of criminal activity. Additionally, many policies will also exclude any property that is owned by the business, such as buildings, machinery, or stock.

The Risk of not having Public Liability Insurance as a Small Business.

As a small business owner, you are at risk of being sued for damages if someone is injured or their property is damaged as a result of your business activities.

Without public liability insurance, you could be liable for the cost of legal fees, settlements, and medical expenses.

How Much Does Public Liability Insurance Cover?

Most public liability insurance policies will cover up to R10 million worth of damages. Usually, the amount of cover will depend on the size and type of your business.

Some insurers will also offer an “umbrella policy” which provides an additional layer of protection over and above your standard public liability insurance policy.

Public Liability Insurance Examples.

Below are some examples of claims that can be made against a business enterprise.

Public Liability Claim to a Plumber:

-If a plumber was carrying out his work on a customer’s premises and caused water damage to the property, the customer could claim the cost of repairs.

-If a plumber was working on a customer’s property and accidentally injured them, the customer could make a personal injury claim against the plumber.

Public Liability Claim to an Electrician:

-If an electrician was working on a customer’s property and caused a fire, the customer could claim the cost of damage to their property.

-If an electrician was working on a customer’s property and accidentally injured them, the customer could make a personal injury claim against the electrician.

Public Liability Claim to a Cleaning Company:

-If a cleaning company was working on a customer’s premises and damaged some of their property, the customer could claim the cost of repairs.

-If a cleaning company was working on a customer’s premises and accidentally injured someone, the customer could make

Public Liability Claim to an Architect:

-If an architect was working on a customer’s project and failed to meet the deadline, the customer could claim damages for any losses incurred as a result.

-If an architect was working on a customer’s project and made a mistake that resulted in the building not being up to code, the customer could claim the architect.

Public Liability Claim to a Motor Mechanic:

-If a motor mechanic was working on a customer’s car and caused damage to the car, the customer could claim the cost of repairs.

-If a motor mechanic was working on a customer’s car and accidentally injured them, the customer could make a personal injury claim against the motor mechanic.

As you can see, there are many different scenarios where public liability insurance can protect your business.

How to Get Public Liability Insurance?

The best way to get public liability insurance is to compare quotes from different insurers. Make sure to get at least three quotes so that you can compare the coverages and costs.

You can also talk to a broker who specializes in small business insurance. They will be able to help you find the right policy for your business.

When you are comparing quotes, make sure to read the fine print so that you understand what is and is not covered by the policy.

Public Liability Insurance for Events.

If you are hosting an event, you may need to get public liability insurance to protect your business in case of any accidents or injuries that could occur.

Most event insurance policies will cover up to R5 million worth of damages. The cost of the policy will depend on the size and type of event, as well as the location.

Insurance companies will also take into account the number of people who will be attending the event and the type of activities that will be taking place.

It is important to get event insurance as soon as you start planning the event. Taking this precaution will ensure that you are protected in the event of any unforeseen circumstances.

Conclusion

As a business owner, it is important to understand the risks that you are exposed to and to make sure that you have the appropriate insurance in place to protect your business.

Public liability insurance is a vital form of protection for small businesses, as it can provide cover for the costs of legal fees, settlements, and medical expenses if you are sued for damages.

Public liability insurance can also protect your business from expensive claims and lawsuits.