One of the first decisions you need to make before your new business can open its operations is your liability insurance coverage. In general, there are two ways you can go: Public liability coverage and general liability. U.S. Risk Insurance works hard to educate customers on the distinctions in risk insurance definition, to help them choose. While there are a lot of individual considerations for companies to make about the individual ins and outs of any given policy, the distinction between these two types should make it easy to decide on one or the other as a starting point.
Differences Between Public Liability and General Liability
To put it simply, public liability covers you against accidents or other incidents that cause injury to third parties on your premises. This includes members of the general public who visit for shopping or other purposes, as well as contractors, employees of vendors, and visitors from client companies or suppliers. General liability includes all the coverage in public liability, plus additional avenues of coverage against the effects of defective products or workmanship, employee injury, accidents, and other common risks not included in a PLI. It might sound like general liability is the way to go in most cases, but if you don’t need that additional coverage, it’s a good idea to opt into the more economical choice.