What is the difference between property owners liability insurance and public liability insurance?
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Asked April 27, 2011
Public liability insurance is designed to protect a business location against claims of injury or damage. It is a very well-defined branch on business insurance, and offers protection only against claims from the public, not claims resulting from employees, vendors, or material loss. Public liability coverage is the least expensive types of coverage, but the gaps in risk protection include company equipment, flood and fire protection and other facets of risk management that may be critical for many businesses. This is the type of insurance that shop owners carry, to protect against fall and trips claims, and could be compared to purchasing minimum coverage for an automobile.
General liability insurance is full coverage insurance for a business. It includes liability and bodily injury, intellectual assets, physical property, and all facets of the public liability coverage. General liability protects against employee and vendor claims, as well as loss of materials and loss of use of equipment or facilities. It is not well-suited for large businesses, but is a very robust coverage plan for small and medium companies.
Neither one of these policies include workman's comp insurance. Where such employment insurance is required by law, it will have to be obtained separately or as part of a complete business insurance package. Fior large companies with many assets and possible liability risks, Professional liability insurance is the most complete offering of the group, with higher limits and more extensive coverages.
The question that needs to be answered is what your liability needs are, and how much is at stake if you have the wrong coverage or not enough coverage. Companies with a high capital flow may take one or two losses in stride, but a single major injury suit could severely affect the future of companies with a low profit margin. Insurance reduces the company's exposure to risk and allows it to focus on earning capital.
Answered April 27, 2011 by Anonymous