Why Companies Should Have Public Liability Coverage

Every company has risks, just as every business needs some form of liability coverage. When it comes to insurance policies, general liability and public liability insurance are two that you may want to consider. How is PLI insurance any different from general liability?

What Is Public Liability Insurance?

Public liability insurance represents minimum coverage. This type of policy protects a company against allegations of negligence, injury, or accidents made by public individuals. For example, if you have a visitor on the worksite and an accident leads to injuries, your business might be liable for his or her injuries. While some municipalities require general liability, they do not usually require public liability.

Is PLI Necessary if You Have GLI?

General liability and public liability insurance cover your company’s legal responsibilities, but in two different scenarios. Public liability insurance only covers the liabilities of your company towards the public. It does not cover injuries or damages alleged by employees, vendors or investors.  General liability is a more comprehensive coverage than PLI. Understanding the difference between the two coverages can help you identify any gaps in your coverage.

Your business’s insurance options depend on your budget, your company’s size, and the specific risk exposures that your business has. Public liability is more specific whereas general liability is broad.