What is covered under a public liability car insurance policy?
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Asked August 7, 2013
Public Liability is also known as General Liability insurance, and is designed to protect a business against different types of losses related to their interaction with the public. Many state and local jurisdictions will require some businesses to carry Public Liability, but it is a good idea to have whether you are required to or not as this type of coverage could prevent severe financial costs to a business.
Public Liability includes most forms of liability, including bodily injury damages, property damage, and liability lawsuits brought against the company. For example, if a customer slips on the floor and breaks a leg, your Public Liability would cover the costs. Similarly, if your ladder truck accidentally broke a window, it would be covered.
Public Liability is not intended to replace employee insurance such as Workers Compensation or Disability Insurance. The federal government will require business with employees to provide these types of insurance, but they are purchased separately from Public Liability.
Public Liability has exclusions to what it will cover. The particular exclusions will vary from state to state and by insurer, but include such things as willful misconduct and intentional damages or misconduct of the business. Punitive damages resulting from these types of claims are usually excluded from coverage as well.
Having the right amount of Public Liability coverage is important. Without enough coverage, your policy could reach its limits without a full settlement, leaving the company unable to pay for damages or injuries. Just as having too little liability insurance for a car could result in financial ruin of the individual, insufficient Public Liability could result in the seizure of a company's property. Speak with a qualified agent to learn more about what your business needs.
Answered August 7, 2013 by Anonymous