The Role Public Liability Plays in Protecting Your Business

From a business perspective, most business owners and company heads are familiar with professional insurance for their contracting or professional work, otherwise known as errors and omissions coverage. However, the risk of public liability is also present for the average company, and can bankrupt a good business with one or two bad lawsuits.

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Public liability: What you need to know

A business or individual contracting himself as a professional business is responsible for all of its actions and production, even for those effects that result in personal injuries or loss. For products, most people are familiar with product liability, but a business can also be responsible for any injury its activities or services cause as well.

A public liability insurance policy is written and designed to ensure that both customers as well as the regular general public person is addressed if he or she suffers an alleged injury from the business. That can include an act of the business or the company’s property, and it can include both active or passive causes as well.

Anyone thinking that they are too small of a business or too obscure to be noticed should think again. There is very little anonymity today, especially from those who make it their own daily work to look for potential risks and take advantage of them. As long as a business represents a potential source of assets and income, it can be a valid resource for a lawsuit or a litigation threat.

Preventing litigation

Interestingly, the risk of litigation is entirely preventable. No, a business can’t necessarily stop every claim, but with a proper public liability policy in place, the risk can be contained and managed for a very low cost. And that can allow the business to continue without worry and, even more importantly, without facing bankruptcy.

The startup and youth phase of a business is its greatest vulnerability to a fatal lawsuit, so having a protective policy in place can do quite a bit to prevent a legal knockout blow until a business has more reserves with growth to handle more or spread the costs.


So your business could continue to take chances and hope that nothing bad happens until reserves become strong enough to take a few punches. Or your business could purchase solid protection for a very manageable cost and put your entire energy on moving ahead instead of wondering “what if.”

From a forward strategy perspective, having proper insurance in place just makes good business sense.


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