What is Public Liability Insurance?

A public liability insurance policy is one that will pay for a legal defense if someone walks into a place of business and is injured in an accident. These types of lawsuits can result in large judgments against the business owners. Many businesses have decided to settle out of court but, this also requires a large sum of money.

How Public Liability Benefits Business Owners

When business owners have a public liability insurance policy, their insurance companies pay for their legal defense and the money they are ordered to pay the plaintiffs if they lose in court. The price of the policy is worth it if the cost of such legal action would diable or impair the business.

Establishments Most In Need of Public Liability Insurance

The types of businesses that benefit most from public liability insurance are:

  • Retail stores
  • Bars
  • Nightclubs
  • Theaters
  • Sports facilities
  • Hotels

Some industries are very expensive for insurance companies to insure. These types of companies may be denied a policy because they are considered such high risk, or they may just be charged extremely high rates. In order to find the insurance company that will charge rates that are reasonable for any business in any genre, business owners can visit InsuranceQuotes.org to find out what more than one insurance company will charge them for a policy. This will help them find low quotes for a policy that will adequately cover them.

Without public liability insurance, a business has the potential to be closed if there is an accident. The policy will provide a legal defense and payment of the award to the plaintiff. Those who refuse to purchase these policies will be financially responsible for everything, and they may not be able to afford it.

Creative Commons License photo credit: Garry Zeweniuk

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