What Does Public Liability Insurance Cover?

In case your business is held accountable for causing injury to an individual or people who are not on your company payroll or for damage caused to their property, the relevant legal expenses, and the compensation payments can be covered by the Public Liability Insurance in Singapore. The scope of this policy also extends to death, bodily injury or damage to a person’s possessions, which has been caused by your company. The PL insurance provides coverage for payment of compensation claims that are made by members of public, customers or even suppliers who are dealing or interacting with your business. However, an important point to note here is that the PL insurance will not cover employee injuries or damage caused to their properties. You will require a separate liability policy for the employees to tackle such risks.

Instances of public liability

An instance of the application of a public limited policy would be if a supplier, while trips accidentally on one of the loose floorboards while delivering some ingredients to the office cafeteria. The supplier suffered from physical injuries and is now claiming compensation for damages against the business owner. A second example could be a consultant while working in the office of a client spoils some tea and damages an expensive computer gadget of his client. Subsequently, the client claims for the expenses of replacement or repair. Another good example is a customer in a parlor can claim for compensation if her hair got burnt by the hair straighteners, which a hair stylist on the payroll of the salon had left, switched on accidentally.

Paying compensation

In all the above scenarios, if a business or an individual takes legal action for the injury or damage they have experienced, the courts will eventually give the final verdict on the responsibility. In case the court finds a company liable for causing damage, death or injury, it will order the business to pay monetary compensation to the plaintiff. The payment for compensation will consider factors like the loss of earnings for the claimant, expenses for repairing or replacing the damaged property or any other medical costs. The PL insurance policy also covers the legal expenses of the insured as well as the legal costs incurred by the claimant, as well as the compensation amount, subject to the policy’s limit.

Levels of cover

Your cover limit can be selected based on the level and the kind of risks that your business is vulnerable to along with the probable limit of compensation payments. The limit of the policy is the maximum value that an insurance company will be paying for a particular event or it can even be the total maximum amount that an insurer will be paying for many events in a single year.