ï»¿Does My Company Need Public Liability Insurance?
The many available business insurances work by offering protection to the business owner, the employees and the business, as a whole. For anyone who has just embarked on the path of setting up a business, choosing the right business insurance can be a confusing task. Business insurance can be classified into two depending on their necessity: Mandatory business insurance and optional insurance.
Public liability Insurance (PIL) is a type of optional insurance which offers protection against an injury incurred to a member of the public or their property in the business premises. The protection also extends to the client site and in public domains, where you work.
Who Needs Public Liability Insurance?
In general, since Public liability Insurance Singapore is optional, there are two scenarios which demand the need of PIL:
1.Companies Which are at High Risk of Exposure
These companies witness high rate of footfall every day. Such businesses include cafes, salons, builders, shops and related establishments. A hairdresser can be sued when a client receives a second degree burn with hot wax. If there is a lawsuit filed under these circumstances and the business lacks public liability insurance, the damages caused can cripple the profits. Similarly, in a cafe, a customer can slip and hurt themselves. As the damage is inflicted in the clientâs property, compensation is their responsibility. If youâre lucky, compensation will be a meager sum, but in most cases, it runs up to millions of SGD. Insurance companies offer PLI starting from 1 Million SGD coverage. You can choose for a higher coverage depending on the scale of the business.
2.Clients Who Demand For a Proof of Cover
In few cases, there are client who ask for proof of cover before negotiating the terms of the business allegiance. Contracts with the government or publicâs involvement generally require a PIL.
PIL can be a life saver even in the situation of a private party. public liability insurance singapore can save your business from shelling out payments for medical mills, compensation claims and legal fees if an individual suffers from injury at your party. If the venue is at a famous tourist site, PIL will additionally cover damages caused to the venue. To help decide the amount of coverage your business requires, get in touch with a professional.