Starting a small business? If so, now is the perfect time to start thinking about insurance. There are various forms of insurance policies but none of them are designed for small businesses like PLI. It is crucial to give much consideration to your insurance policy because the future of your small business is relying partly on it. PLI is a policy that is designed specifically for both small- and medium-sized businesses. Below, you will discover what it covers in terms of business insurance.
PLI – Public Liability Insurance
Public Liability Insurance, better known as PLI in the business insurance world, helps decrease the risks of owning and operating small- and medium-sized businesses. If your business interacts directly with the general public, PLI is the type of policy you will need. The policy covers third-party injuries that occur on your property. For example, a male client entering your business slips and falls on the floor. The policy will immediately kick in and cover the client’s medical expenses. It is crucial to note that the policy may not cover all of the victim’s health care expenses. The coverage amount will depend on the amount of your PLI policy.
Covers Lawsuit Expenses
All sized businesses are at risk of third-party lawsuits. With the ever-increasing fraudulent lawsuits filed in the United States each day, all businesses must be fully protected at all times. One lawsuit could lead to bankruptcy or the shuttering of a business, regardless of its size. What is PLI? It is an insurance policy that is designed to protect businesses from unnecessary expenses related to third-party claims and lawsuits.
According to statistics, more businesses in Australia and the United Kingdom have PLI policies than those located in the United States, where Commercial General Liability (CGL) is more popular.
A Necessity For Small Businesses
Just like a license and bond, insurance is a necessity for businesses of all sizes. The more risk exposures your business has, the more insurance it will need to be fully protected. PLI is the key to protecting your business from bankruptcy or closure related to third-party claims and lawsuits. If your business is not covered in the event of a third-party accident, you will be responsible for the client’s medical expenses. If you are covered, your PLI policy will kick in as soon as you file a claim with your insurer. If you are lucky, you may not need to pay any of the expenses out of pocket.