The Big Risks in Business for Which You Need Public Liability Insurance
March 27, 2017
An owner of a business or the business itself can be exposed to certain risks when their equipment, sites or activities cause either property damage or personal injury to the members of the general public. This is known as the public liability for the business.
The size of the business is not important as even a small business can bear risks due to some damage caused to its customers. There are various instances when other organizations may not like to work with you if you have not purchased public liability insurance in Singapore. Even medium-sized and small businesses that are interacting with the public may get exposed to such risks due to small accidents while they are into their daily business activities. For instance, the builder leaving a heater accidentally on and that leads to a fire break-out at the client premises. Another example can be the leakage of a water pipe that stops all work in an office for several days. While these incidents may appear to be small, but there could be severe consequences for the customers. The latter could even proceed to take legal actions against the business that supplied the services or the goods.
What should be covered?
There are typically two terms associated with the Public Liability Insurance. They are “property damage” and “personal injury”. Personal injury is a broad term and its scope may also include defamation and mental injury. On the other hand, property damage may also constitute of loss of the use of a property though it has not got damaged. The PL insurance should typically cover the following.
ï·Property damage in the control, custody or care of the insured.
ï·Liabilities that are assumed as per the agreement
ï·When there is an occurrence of a personal injury or property damage due to the design error of the suppliers.
ï·When leased properties get damaged.
ï·Exporting products for locations where an insured person does not have any kind of physical presence.
ï·Use, operation, maintenance or ownership of watercraft.
ï·When pollutants get discharged accidentally or all of a sudden.
ï·Repair and service of the motor vehicles.
Apart from the points mentioned above, there could be other factors too. Moreover, the policy should also cover the expenses for defending the above-mentioned claims in a court and also for negotiations and investigations to this effect.
Whom can the policy protect?
ï·The policy should protect subsidiaries
ï·Sporting or social clubs created with the consent of the insured.
ï·Businesses or people to whom a promise has been made by the insured to arrange coverage
ï·Shareholders, partners, employees or directors of the insured.