Public Indemnity Insurance- A Need for Every Proprietor
Staying insured or having satisfactory insurance policy means that your work area, like the studio, materials and equipment can be changed or replaced if they get damaged or stolen. It also protects you from the liability of those accidents that often occurs in work stations, industries and factories.
There are mainly two types of insurance policies, which the company owners use to insure their business- public insurance liability and public indemnity liability.
Public Liability insurance:
Public liability insurance covers the company owner or the policy holder against every claim that people or the third parties make against them. Most of the time, the company stands liable for issues in which, they are indirectly related, like accident of any client within the company premises.
Public liability insurance is important because it secures you from incurring loss, most of which is because of the compensation you pay to the people who meet with accidents within the premises of your company.
Public Indemnity Insurance:
Public Indemnity insurance is intended for those proprietors who wishes to protect themselves and their company from claims that the members or the employees working in their make against the company after meeting with injuries and serious accidents. Claims are of varied types and they can at times rise more than the profit margin of your company. Victims claim for compensations, which can be half of your profit percentage or sometimes more than that. To stay secured from incurring such losses, public indemnity insurance is highly required.
Here are a few examples of some instances, which display the need of this insurance policy in businesses.
- An employee of yours meets a terrible accident by trembling on an obstacle that came into his way. Unfortunately, the accident takes place within the premises of your company and thus, you are held liable for it. This kind of situations come without any prior notice and is something that you just cannot avoid. In such circumstances, public liability insurance comes into play and pays off all your debts and compensations, without bothering your profit margins.
- Imagine yourself as an owner of a packing and moving company. You have employees who are making the entire process run smoothly. But one day you find a blunder, your staff misplaces one of your customer’s shipments. Though this happens accidentally, your customer will not compensate you in such matter. He would claim for this shipment and you will have no other way left, other than paying him the compensation.
There are millions of such situations that happen with business proprietors in a regular basis. Though you cannot control such situations, you can surely find out a way to decrease the amount of loss you are incurring. And one of such easy solution is to opt for public indemnity insurance.
