Public liability insurance (PLI) offers far less-inclusive risk coverage than does a commercial general liability policy. Still — despite the limitations — for some businesses, PLI insurance is an excellent option.
What It Covers
Public liability is designed to protect a company from claims of injury and property damage suffered by third parties (not employees) at the business location only. Office visitors, store customers and delivery personnel all fit the definition of a third party. Some of the events that may expose a business to a PLI insurance claim include:
An office ceiling leak goes unnoticed — until a client slips on the puddle. A broken wrist and an injury claim are the unhappy results.
John Doe schedules a meeting with his investment firm. During the conference, an employee spills coffee on the client’s laptop and causes irreversible damage. Mr. Doe expects reimbursement not only for the machine but for the loss of important files.
A store employee accidentally trips a pizza deliveryman. The upshot? A big mess on the floor, a concussion for the pizza guy and a personal injury lawsuit.
Why Pick PLI?
Because the coverage focus is so narrow, PLI insurance is much less expensive than a general liability policy. For new and/or small businesses that are retail or public access-oriented, such a policy is a great starting point and a good, economical option. It is always possible to add more coverage later.