If you’ve ever thought about owning a business, then you should also know how important it is to have insurance. In particular, insurance that covers the products that you sell and the public that you sell to. Having this insurance can easily protect you from unforeseen liabilities.
What is Product and Public Liability Insurance?
Before you know what the benefits of having a product and public liability are, you need to know what it is first.
This type of liability will protect you and your business against any type of claim that may occur because of your products. These include products that are sold, delivered, or supplied directly from your business.
Having product and public liability insurance also protects a business from any injury or damage claims that another business may have sustained from the use of your product.
Any and all types of businesses and their employees are all susceptible to risk when it involves damage that is caused to other’s property, injury caused to individuals as well as the chance of being fined at any time. When your business has a public liability, you are not liable for any legal responsibility that may be caused by damage.
A business that invests in public liability is protecting themselves from the following:
- Accountability for the property that you don’t own
- Responsibility for damage caused to underground utilities
- Responsibility from a legal standpoint when damages occur to other property or personal injury that you cause.
Now that you have a clear understanding of product liability and public liability, you need to know that there are also many benefits of having it too, like the seven we have listed below.
Law May Require a Business to have it
The majority of states have passed laws that require businesses to have product liability and public liability. But if your state does not, you may want to look into it so that you’re covered from any possible liability that may occur in the future.
Company Employees Are Protected
Having product liability and public liability protects all employees who may have caused damage to other property. They are also protected if they get hurt while on the job.
Businesses Are Protected from Customers
Your product liability and personal liability coverage cover you from customers who make claims against your business. These claims include those that are your fault or not. Within your insurance policy, you should ensure that it provides the necessary coverage that gets caused by the following:
- Personal injuries
- Damage to property
- Body injuries
- Injuries caused by a product
A good example of this is if any accident occurs with a customer and they require a trip to the hospital. Having public liability will cover the hospital bill that the customer incurs.
Your business will Have Integrity
When you add both product liability and personal liability, you are protecting not only your business, but you are showing your customers that you do care about their well-being and are willing to do what it takes to reduce any risk of harm. It also says that proper protection is also in your possession.
Makes Your Business More Attractive to New Business
Having business contracts is great, but you need to remember that having the proper liability for products and persons will make your business more attractive to these new clients. A few instances where this will lay true involve:
- A customer contract
- Financial contracts
- Rental contracts
Can Keep Employees Working for You
Many employees look for more than just a salary these days. Having the right benefits makes it worth working for employers too. If the business is unable to offer basic coverage like liability, then what would be the point if they don’t feel cared for?
Management Team is Protected
Your product liability and personal liability insurance protect the decision-makers of a company from prospective suits filed against the company. These types of liability insurance work for any business entity, so it’s always a good idea to add it.