Explain Public Liability Insurance
Public liability insurance is available in the United Kingdom. The insurance functions similarly to business liability insurance in the United States. The purpose of public liability insurance is to protect business owners in the event that an individual becomes injured while at a place of business. Public liability policies come with many coverage options.
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Purpose
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The purpose of public liability insurance is to pay for damages as the result of a business's legal liability for third-party damages. This can include bodily injury, death or damage to property as the result of the activities carried out in the course of business. Liability coverage also extends to any products that a business supplies for use.
Requirements
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Public liability insurance is generally not a legal requirement in the United Kingdom, but having coverage is a good business decision. Horse-riding establishments are one of the exceptions that are required to have public liability insurance. Proof of coverage may be required before a customer will hire a business to do any type of work. Authorities in most areas may also expect that a business have a minimum amount of coverage in place.
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Policy Excess
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All public liability insurance policies come with an excess amount that an insured will need to pay when making a claim. The total cost or premium being paid for the policy will be less for the insured when a higher excess amount is chosen. This means that an insured will need to pay more out-of-pocket when a claim needs to be made.
Additional Options
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Insurers that offer public liability insurance may provide additional coverage options with a policy. One such option is for product liability coverage. This is coverage that will pay for damage caused by a product sold or offered by a business to a customer or other third party. Another additional coverage option is for temporary staff liability. A business that employs temporary workers may need to have liability coverage for the casual or short-term employee.
Important Information
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Any business that purchases a public liability insurance policy needs to review the policy to make sure that coverage needs are met. Insurers can differ in the types of coverage that are offered as well as the price that is charged for a policy. This means that policies should be compared first before making a purchase. Insurers may also have different claims procedures in place when an accident or loss needs to be reported.
Extras
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When insurers are in competition for business they may offer free extras on a policy to entice a customer to make a purchase. However, there is no guarantee that an insurer will offer any extras at all on a policy. An insurer should always be asked if there are any extras that can be included before a policy is purchased.
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