| Whenever people transport, manufacture, perform | | | | damage. |
| services, hold public events or interface with the | | | | When other factors are included such as the |
| Public, a liability appears. Savvy small and large | | | | consumption of alcoholic beverages, the risks |
| business owners realize the need for economic | | | | increase. Simple trip and fall accidents may result in |
| protection claims that may occur from personal and | | | | large claims for injury. The risk calculated by the |
| property accidents and damage. Public liability | | | | underwriter takes into account the amount of |
| insurance provides a safety net for injuries and | | | | activity and exposure to potential accidents; the |
| damage claims that may occur. | | | | higher the risk, the greater the premiums and policy |
| No matter how many safeguards in place, tests and | | | | deductable. |
| assurances, malfunctions, injuries and damage may | | | | People may erroneously believe such claims for |
| occur. Once damage or injury has occurred, claims for | | | | damage and injury will not amount to large sums. A |
| negligence will arise. This insurance offers protection | | | | simple burn from hot food or beverage may seem |
| from suits affected by the adverse events. Without | | | | innocent and low sum claims. The reality is that Court |
| this insurance, companies can suffer economic | | | | decisions for one million dollars are commonplace for |
| disasters when required to pay out compensation. | | | | claims including those "simple" burns. |
| The requirement for public liability insurance varies | | | | Public liability insurance not only covers the cost of |
| from state to state, and businesses need to do an | | | | successful claims, the insurance covers legal fees. |
| individual risk analysis to understand what level of | | | | Legal fees can amount to thousands of dollars |
| coverage is cost effective for the business. For | | | | depending on the length and type of claim. These |
| some small businesses, the cost of such insurance | | | | costs include accountant, attorney and when |
| can be economically unfeasible. Unfortunately if a | | | | required, expert witnesses. The claimant legal fees, if |
| successful claim against the business occurs, the cost | | | | a successful claim occurs, are paid through this |
| may bankrupt the business. | | | | insurance. |
| Premiums for public liability insurance are based on the | | | | Public liability insurance provides an umbrella of |
| size, risk and type of public exposure. Big businesses | | | | protection for company assets. Whether the policy is |
| with a large public exposure may require large public | | | | for one, two, three or more million, these policies will |
| liability insurance policies. Places such as skating rinks, | | | | provide a business with the ability to remain |
| shopping malls, hotels, sporting events, amusement | | | | operational, viable and protected. |
| parks may have more potential for accidents and | | | | |