As a business owner, you likely come into contact with a wide range of third parties (vendors, customers, landlords, competitors and the like) on any given day. These third-party interactions whether in person or virtual are part of running a business, but they open you up to risks. Protect your business from the risks that come with day-to-day operations, such as bodily injury and property damage to third parties, by investing in commercial public liability insurance.
What is commercial public liability insurance?
Commercial public liability insurance is another name for commercial general liability insurance which protects businesses from financial losses if they are found liable for a third party’s bodily injury or property damage. Claims are brought against businesses all the time, whether a customer slips on a wet floor in your retail store or a customer gets food poisoning after eating food you sold them or has an allegergic reaction after using a product or receiving a service.
Why do I need commercial public liability insurance?
You need commercial public liability insurance because there is no better way to protect your business from common risks. Should your business be sued, whether due to property damage or bodily injury, this type of insurance will cover the cost of compensatory damages awarded against you, settlements approved by the insurer and any legal fees incurred in providing your defence. Any business that sells products or services and/or where clients visit your office space, where your employees visit clients’ homes or businesses, or that has employees that conduct business off-site needs commercial public liability insurance.
What are the benefits of getting commercial public liability insurance?
The benefit of getting commercial public liability insurance is that it will cover your business in the event you are sued following a third-party incident on your business premises or away from your premises. For example, if a customer slips, falls, and breaks their ankle in your restaurant, they could file a lawsuit against you. Without commercial public liability insurance, you would be forced to pay for the cost of hiring a lawyer and settling or going to court, as well as a payout to the claimant depending on the judge’s ruling. This can be extremely costly, time consuming and can even hurt your business’ reputation.
What does Commercial Public Liability Insurance cover?
Commercial public liability insurance policies vary between businesses, but typically includes the following coverage types:
- Product liability: This protects your business in the event that a product you sell results in property damage or bodily injury to a third party.
- Bodily injury liability: This covers bodily injury or property damage to a third party person or property relating to your business operations.
- Tenant’s legal liability: This helps cover the cost of repairing or replacing property in the event someone damages the premises your business is renting.
- Personal and advertising injury liability: This helps cover any costs associated with allegations of slander, libel, defamation, or false advertising.
What is not covered by Commercial Public Liability Insurance?
Typically, commercial public liability insurance policies do not include coverage relating to the following:
- Patent infringement
- Intentional criminal acts
- Financial loss from advice or services provide (as that is what professional liability insurance is for!)