If a business isn’t required to carry general liability insurance by state or city law, they may choose public liability insurance (PLI) as a more economical option. By covering a business with PLi insurance, you can prevent losses due to sudden public-related accidents without paying for coverages that aren’t necessary.
What Risks Does Public Liability Insurance Cover?
The pli insurance is a cost-effective type of insurance for small to medium-sized businesses, which offers a minimum amount of coverage for public-related claims. Here are a few types of risks that are covered under PLI.
- Members of the public, visitors to offices, delivery personnel or customers
- Injuries acquired by public or third-parties
- Property loss or damage
- Personal losses of public or third-parties while on the property
Choosing Public Liability Over General Liability Insurance
Almost all businesses have some exposure to the public or third-party individuals, whether there are customers, visitors, pedestrians, drivers or third-party maintenance workers on the property. However, this doesn’t necessarily mean that they require all of the coverages in general liability insurance.
The pli insurance is best recommended for retail or public-exposed businesses that require minimum protection. Typically, these types of policies are economically priced and offer less in protection totals than general liability insurance. Business owners are responsible for paying any amounts surpassing the coverage in the policy.