Public liability insurance is a must-have policy for any business dealing with third parties on a regular basis. From vendors to other companies to clients, anybody can sue you for property damage or bodily injury at any time. So, having a steadfast public liability insurance policy prevents you from paying out-of-pocket for costly claims.
We understand finding the right insurer can be tricky, so we’re here to help you access the best in the business.
You’ll learn more about public liability insurance, what it covers, and how to get it in the following sections.
Public liability insurance, sometimes referred to as commercial general liability insurance or slip-and-fall insurance, protects your business against the daily operational risks of running a business.
Generally speaking, the policy financially protects your business from third-party lawsuits alleging property damage and bodily injury.
For a better understanding of how public liability insurance works to keep your business afloat during otherwise nightmarish situations, take a look at these real-world examples:
Example One: Slip and Fall Claim
Your office floor is wet. When your client comes to visit, they slip and fall, spraining their ankle.
They sue your business for bodily injury. Luckily, your public liability insurance policy covers the medical costs and legal fees, equalling $20,000. Without the policy, you would be responsible for paying the $20,000 out of pocket, potentially putting your business into debt and risking permanent closure.
Example Two: Bodily Injury Claim
Your chef leaves a sharp knife in the seating area of your restaurant. Unfortunately, a child cuts themselves on the blade.
The child’s parents successfully sue you for bodily injury. Thankfully, your public liability insurance policy covers the medical expenses and legal fees associated with the case, equalling $15,000.
Example Three: Property Damage Claim
You’re hired as a painter to apply a fresh coat of paint to your client’s living room. Accidentally, you splash paint on your client’s brand-new carpet.
Rightly so, your client sues you for property damage. Thankfully, you purchased a public liability insurance property that covers the legal fees and carper repair, equalling $10,000.
While all policies are customizable, most public liability insurance provides coverage for damages and legal costs associated with the following:
Public liability insurance doesn’t cover your company from every eventuality. So, it’s always a good idea to talk to one of our advisors about a comprehensive policy package. They’ll connect you with an insurer with industry-specific experience to ensure you’re covered in all scenarios.
Public liability insurance only covers you for third parties’ accidental property damage and bodily injuries. It will not provide coverage in the following scenarios:
As a small- to medium-sized business, you should anticipate spending roughly $450 every year on a standard public liability insurance policy with a limit of $2 million.
However, several factors influence the premium price you receive, including:
Public liability coverage is essential for almost all business owners in Canada. It can cover the costs of unforeseen circumstances like lawsuits arising from third-party property damage or bodily injuries.
As a general rule, you should acquire a public liability insurance policy if:
Public liability insurance is often a business’s starting point. It covers the basics, but it doesn’t necessarily provide complete coverage by itself. After all, your company is more than just a slip and fall risk. So, you need a comprehensive insurance package that contains numerous standalone policies to cover the areas left open by public liability insurance.
Based on your business type, you could face a myriad of extra risks. Consider these examples:
Fortunately, various other business insurance types exist to cover such risks, including but not limited to:
We are well-versed in connecting business owners like you to Canada’s leading and licensed insurance brokers and agents. Our unbreakable working relationships mean you can easily access the best rates and policy packages.
We make the insurance world simple and your life easier. Choosing our service means choosing peace of mind. Get started by completing our secure online inquiry form.
If your company is hosting a one-off event (like a fundraiser), you might need insurance for a short duration. In this case, we can connect you with an experience short-term public liability insurance provider for coverage.
Although, if you’re hosting multiple events over an extended timeframe, it’s often more cost-effective to buy insurance that covers the entire duration.
In Canada, the terms commercial general liability insurance and public liability insurance are used interchangeably. Therefore, they are the same type of policy!
Public liability is a term most popular in the United Kingdom and the United States of America.
No, it won’t protect your property. You should consider acquiring a commercial property insurance policy or equipment breakdown coverage to keep your building safe.
All provinces’ (except Quebec) common law dictates that you have a duty of care to the public as a business owner. Sadly, accidents happen, and the injured party could claim that:
If any of the above applies, they can pursue legal action for negligence against you and request potentially expensive compensation. A public liability insurance policy will cover all the costs and settlements, meaning you never risk going into debt if a lawsuit occurs.
The only accurate way to determine the amount of coverage you need is to let our team at LiabilityCover analyze your requirements. We’ll connect you with a broker or agent that has industry-specific experience. They’ll look at every aspect of your company and customize the policies to suit you.
With that said, here’s some basic information on the topic to give you a headstart in the public liability insurance world:
Public liability insurance doesn’t cover errors and omissions. It only offers coverage for accidental property damage and bodily injuries to third parties.
Professional liability insurance financially protects you from errors and omissions. If your customer sues you for a service you provide, you’ll need a PLI policy to fund the legal and medical fees.