General liability and public liability are two important insurance covers that protect businesses from third party claims. There might be confusion on whether to choose public liability or general liability insurance. In fact, it depends on the individual business, risks that the business is prone to. Let us consider the difference between the two coverages, which could help you choose the right one for your business.
General liability insurance
Businesses encounter the risk of legal issues that come in the form of liabilities. Having general liability insurance covers business owners from legal liability because of injuries, illnesses, accidents or negligence. The insurance coverage bears the cost of medical expenses because of the above issues. It also covers issues such as having hurt the reputation, the cost and process of litigation, etc.
General liability insurance is useful for businesses who deal with employees, vendors and investors. Unless included public liability is not covered under this policy. However, compared to public liability, general liability offers a wider coverage, therefore is a bit expensive.
Regardless of the size and type of business, business owners need to discuss with an insurance advisory in advance to get an optimal coverage.
Public liability insurance
Every business is prone to public liability as most of them are directly associated with public. Business interests are protected by public liability insurance in case of injury or loss or damage to third party or a customer in the business premises.
Public liability insurance is very essential for businesses that are open to the general public. It is an inexpensive business insurance cover. The premiums are economical and you need not worry about your business regarding covering an injury or damage claim, which is filed by a third party or customer, because public liability insurance ensures that you are covered against such kind of claims.
Remember, this insurance policy does not cover the claims made by employees, investors, vendors. For that you need to purchase additional insurance coverages to cover these liabilities. This is because, in the event of any claim that comes from these groups, it ruins your finances and your business might be forced to close down for shortage of finances, in particular, if yours is a small business. Thus, it makes sense for small businesses to purchase this coverage.
Both public liability and general liability insurance coverages are useful to businesses. However, in order to leverage both and make your policy cost effective you need to be selective while choosing the coverage. By eliminating the unnecessary coverages and by including the risks that are specific to your business you can take the advantage of both in one comprehensive policy. Approach a reliable brokerage that can tailor-made a policy to suit your needs.