Public Liability Insurance Certificate: Do I Need One?
Generally, the initiation of a business starts with the ritual of profound planning, expert advice, and prior experience. Unfortunately, despite all these precautions and planning, businesses occasionally get into unforeseen, eventful periods. Some businesses sink in the monstrous blows of unpredictability. Of course, we can't get help from Doctor Stephen Strange to help us with this situation, but the Public Liability Insurance Certificate can be the knight in shining armour to rely on.
What is a Public Liability Insurance certificate?
In simple terms, a public liability insurance certificate is a legal document that summarises the key details of your public liability insurance policy and proves your business has the right cover. It states that you are covered for unforeseen accidents or losses that may occur to your customers or the general public at your business premises or to the consumers of your goods and services. In short, it is your assurance to your customers that you will take care of them if a mishap occurs to them while being connected with your business.
As stated, Public Liability Insurance (PLI) was created for the welfare of the general public who incur a loss due to the business activities of a particular business.
Now you may wonder if holding a public liability insurance certificate is a legal requirement. The straight answer to this is no. It is only an add-on certification that can be owned but is not mandatory by law.
However, you could find yourself in a difficult position regarding your progress in the business world without PLI certification. This certification is one of the desired requirements your client businesses might look for.
Who needs a Public Liability Insurance certificate and why?
A public liability insurance certificate is a safety shield for a business that involves frequent visits by people or companies that provide products and services to people. If we look deeply into it, every business needs to keep a public liability insurance certificate handy to develop better trust and goodwill in the industry. Here are a few examples where PLI plays a significant role.
Being a doctor is risky and negligence may result in a loss of life.
The unexpected accidents like the Bhopal Gas Tragedy in the chemical industries
For the risks of getting injured, electrocuted or falling from a considerable height
Unexpected fire accidents in schools and colleges or illness due to poor sanitisation of the campus.
Injury due to slippery floors or spilling of hot oil.
When must you produce your insurance certificate?
PLI generally covers the expenses incurred by the company due to the loss of the third party. However, there are limitations to PLI in the areas that it applies. Generally, PLI covers only the following criteria
Physical injury to the third party.
Damage to property that belongs to the third party.
Legal expenses that are incurred while resolving the lawsuit.
The cost of the claim incurred.
Public liability insurance covers the following types of possibilities. It is wise for business owners who fall under these categories to get a public liability insurance certificate. In general, it is a wise move for every business owner to have a PLI certificate, and you will understand why when you read further.
Transportation services risks
The Carrier legal liability insurance in the PLI certificate protects the business from losses and injuries incurred due to fire accidents or accidents while the company's goods are transported. For example, if there is a fire or road accident in a transport company. In addition, the cost of the goods is covered by the carrier's legal liability insurance.
Product manufacturing company risks
The product liability insurance in the PLI certificate protects the business from the damage or injury caused to a third party due to the consumption or usage of its products. For example, if the third party gets food poisoning by consuming food from a particular hotel. Then the third party's medical expenses are covered by the product liability insurance.
The trade credit insurance in the PLI certificate protects business owners from unmanageable credit risks. For example, if the manufacturer procures bulk raw materials and cannot pay back the raw material agency due to a loss in business. Trade credit insurance covers these expenses.
The commercial general liability policy in the PLI certificate protects the company against the costs incurred due to the third party's physical or property damage. For example, if a third party visits a restaurant and gets hot oil spilt on him accidentally. Then his medical expenses will be covered under a commercial general liability policy.
Cyber risk insurance in the PLI certificate protects business owners against the losses incurred due to cybercrime. For example, suppose cyber theft occurs, and information from the partnering companies is stolen and used against the partnering company. In that case, cyber risk insurance covers the expenses incurred by the third party.
The professional indemnity insurance in the PLI certificate covers claims against the mistakes made by the professionals providing services. For example, if a recently qualified physiotherapist suggests the wrong exercise or treatment, which leads to severe injury to the third party. Then professional indemnity insurance will cover the medical expenses of the third party.
Commercial crime risks
Commercial crime insurance in the PLI certificate protects the business against losses incurred due to internal theft or fraud. For example, suppose a member of staff steals an essential physical asset of the company, and a third party sues the company for the loss incurred due to their inefficiency. In that case, commercial crime insurance pays the third party's losses.
Higher official liability risks
The directors' and officers' liability insurance in the PLI certificate covers the directors and officers in the event of a claim from a third party working under them. For example, if the employees or the competitors sue them for some faulty action. The legal expenses will be covered by the director and the officer's liability insurance.
The advantages of having a Public Liability Insurance Certificate
A public liability insurance certificate has many advantages that can help and benefit a business from many possible threats. This insurance covers your business against possible setbacks. It is one of the main factors showcasing the business's merits. It helps you to establish a good relationship with the clients as they develop trust that you will take care of them if a mishap occurs to them in the course of business with the company. It helps companies to maintain goodwill among their customers.
To summarise the perks of the Public Liability Insurance Certificate
Builds strong trust
It gives stability to a business
Cuts off unexpected expenses
Greater support to small-scale businesses
Takes care of legal expenses
The future is uncertain. In short, public liability insurance is like a shield of safety in the modern business world. So it is wise to have a Public Liability Insurance Certificate by your side and face unpredictability with a smile.
Make a choice and protect your business by taking out a Public Liability Insurance with our Smart-Sure Business team professionals. To make things easier, we offer competitive quotes from our panel of professional insurance advisors. Furthermore, our experienced team of professionals provides customised services that perfectly meet your needs. Contact us today for expert advice, service, and protection.