Small Business Liability Coverage

Many business owners are familiar with the need to carry general liability insurance, but there are actually two types of coverage they can consider for liability protection. Public liability, or PLI insurance, is often considered an entry-level insurance coverage, providing new businesses with basic protection.

What Is It?

Public liability works much like general liability, in that it offers protection to business owners and their assets in situations of loss that involve:

  • Injury
  • Property damage or loss
  • Losses caused by third parties or members of the public when on business property

One of the primary benefits of using a public liability policy is the budget-friendly nature for new businesses. As an economical choice, it offers the minimum amount of coverage needed for incidents of injury, accidents or negligence. It is also extremely limited with regard to who it covers. This policy works only with incidents involving the public; it does not cover employees.

Few companies know the differences between a general liability policy and PLI insurance coverage. In addition to who the policy covers and the nature of the incident, there is also a concern with the limits of coverage. Generally speaking, public liability insurance offers lower deductibles and premiums, but yet the covered amounts are also much lower. It is helpful to speak with agents experienced in both policy types for the best advice.