Businesses usually face a wide range of risks. Fortunately, there are many types of insurance products that can protect business owners from those risks. Therefore, business owners are advised to purchase suitable insurance policies to protect themselves and their enterprises from every possible risk that may arise during the day-to-day running of the business. Smart Business Insurance has insurance products that are best suited to meet the needs of different types of businesses. You can protect your business from losses occasioned by theft, fire damage, natural disasters, and vandalism, among other things.
Types of Business Insurance Policies
Commercial property insurance is perhaps the most important type of cover that business owners need to purchase. This is meant to protect the business from losses arising from damage or loss of business property. It includes furniture and fittings, inventory, electrical appliances, computer equipment, machines, and any other asset found in the business premise.
Workers’ compensation insurance coverage is designed to protect the business from lawsuits arising from injuries sustained by employees. It provides employees with guaranteed insurance benefits when they get injured at work. In return, they are expected to forego their right to sue their employer.
Commercial vehicle insurance covers losses associated with commercial vehicles owned by the company. Both the commercial vehicle and the goods it carries are covered.
The Risk of Lawsuits
For one reason or another, lawsuits can be filed by disgruntled employees, customers, shareholders, or members of the public. Someone may claim that they slipped and fell on your business premises, injuring themselves seriously. As a result, they can decide to file a slip and fall injury lawsuit. It is important to note that lawsuits can be incredibly costly to defend against. Defense lawyers usually charge exorbitant fees to defend clients in lawsuits. If the plaintiff is successful, the court may award huge damages, which you may not be able to pay. Fortunately, there is an insurance policy to protect businesses from the risk of lawsuits. By purchasing a general liability insurance policy or a public liability insurance policy, a business owner will be able to avoid losses associated with lawsuits.
The Difference Between General Liability Insurance and Public Liability Insurance Coverage
Many people think that general liability insurance and public liability insurance are one and the same, but they are not. While they may be interrelated, they differ greatly. The following is a list of some of their differences:
Coverage
Public liability insurance offers narrow coverage compared to general liability insurance. PLI, as it has been christened, protects a business from losses arising from lawsuits filed by members of the public. The lawsuits can be as a result of injuries, accidents, and property damage reported on the business premise.
General liability insurance offers the same coverage as public liability insurance and much more. For instance, it also covers damage caused by employees, injuries sustained by employees, defective products, and negligence, among other things. This means that general liability insurance offers better coverage than PLI. If you own a startup, you can protect your business by purchasing a public liability insurance policy as it will be able to protect your business effectively. As your business grows, however, you may need to upgrade your insurance coverage.
Cost
It costs more to purchase a commercial general liability insurance policy than to buy a public liability insurance policy. This is because general liability insurance offers wider coverage than PLI. It is crucial that you consult an expert to assess your coverage needs to determine whether buying a general liability insurance policy will be worth it or not.
Suitability
Due to the extent of coverage and cost of the two policies, it is now clear that PLI and GLI have many similarities and differences. We can say that a GLI is an advancement or upgrade of a PLI. Therefore, if what you need is basic coverage, you should consider purchasing a PLI, which is best suited for small and medium-sized businesses. However, if you own a thriving business with a lot of liability exposure, a GLI would be a more suitable option for your insurance coverage needs.
Tips on Choosing the Right Policy
Whether you opt for the PLI or GLI, you must read the terms and conditions of the policy to understand what is covered and what is not covered. After all, a general liability insurance policy may cost a lot of money but offers the same coverage as a public liability policy. Be sure to pay attention to the exclusion and inclusion clauses because you want to be sure about what the policy covers and what it does not cover. Lastly, you must compare the premiums charged by different insurance companies for their PLI and GLI policies to identify the most affordable insurance company. This is crucial because you would like to get the best possible value for your money.
The good news is that there are many business insurance companies and insurance brokers out there, so it is easy to find an affordable insurance policy to meet your coverage needs. During your research, it is recommended that you exercise patience.
