Importance Of Product And Public Liability Insurance For Retail Businesses

As it relates to personal injury, virtually all types of businesses face a variety of risks.  However, operators of retail establishments typically face higher risks than others.  For retail businesses, slip and fall injuries have been a constant concern and despite the best efforts to lower risk, many claims are still being made against retailers.  Thankfully, this is among many risks that can be safeguarded against via insurance for product retailers, more specifically, public liability insurance.  For individuals operating retail stores, this type of insurance policy should be considered a must.  This guide will delve deeper into exploring the importance of product and public liability insurance.

What is Covered by Public Liability Insurance? 

Public Liability insurance can provide coverage for shock or emotional distress that your business could cause another person.  Typically, it will cover the costs associated with investigating, defending against and settling claims made against a business and provide compensation for any claim the business is found liable to make.  Included among the things your policy might cover on your behalf are:

  • Loss or property damage while delivering your product to a customer
  • Injuries sustained by individuals while using your product
  • Personal injury to individuals who might be visiting your premises
  • Damage caused by someone acting on behalf of the business at the time of the incident 
  • Damage or loss of goods that are not owned by you that are in your custody or care 
  • Liability resulting from advertising conducted by or on behalf of the company
  • Legal costs associated with investigating, defending against or providing settlement for a claim

Public Liability Insurance Defined

In essence, public liability is a type of insurance meant for retailers and other types of business that face the danger of causing personal injury or property damage to customers, potential customers and other members of the public.  Should your business activities lead to personal injury or property damage and you are found legally responsible, a public liability policy could cover the costs of any claim made against you. Individuals managing retail shops will be quite aware of the possibility of slip and fall claims and the financial consequences that could result.  Public liability is available in sums up to $20 million; therefore, it is certainly a remarkable way of experiencing some peace of mind.  No insurance policy will provide coverage for every imaginable risk within a retail business; however, a respectable public liability policy will cover several of the risks shopkeepers face daily.

Each policy will differ among providers; however, this type of policy generally will provide coverage for the legal costs incurred for defending against a claim, any compensation or settlement made by the business to the claimant and any damage awarded by the courts to the claimant.

Product Liability Insurance

The majority of public liability policies will include coverage for product liability at no additional cost.  If someone attempts to make a claim against you for a product provided by you, you will have insurance coverage rather than having to face the battle alone.  Additionally, this coverage provides security against personal injury and property damage and has to do with the products you sell instead of incidents that take place on the shop floor.

In essence, this type of claim can be made against a company if a member of the public or customer sustains injury in an unsafe environment on the property on which you operate your business or a defective product results in damage or injury. The listing of possible claims against a business that interacts with the public is unending and could result in major reputational and financial losses. Due to the involvement of manufacturers, importers and wholesalers, product liability could become quite a complicated area. Many people believe that the manufacturer is responsible for claims made against their products; however, there is the constant risk that a court could have a different view.  Additionally, product liability is a complex area and as such, it is essential to discuss your specific needs with your insurance provider before settling on a policy.

Product and Public Liability Insurance for Retail Owners 

Retailers and shopkeepers face some rather unique threats in their business; therefore, many insurance providers have developed policies particularly designed for the demands of retail businesses.  Besides covering public liability, this type of policy can cover additional risks as well.  These include stock and other property damage, theft of cash or stock and even dishonest acts committed by employees.  When placed in a single bundle, these insurance policies can provide remarkable protection for retail owners at an affordable cost.

Product and Public Liability Insurance for Online Retailers

It is not only “bricks and mortar” retailers who require product and public liability insurance.  Online retailers can also receive coverage for all their insurance needs, irrespective of whether they are a large operator with their own premises or a small home-based business.

Cost of Public Liability Coverage

This cost will vary for different types of retail businesses.  Typically, the premiums are directly associated with the perceived risk of a particular business.  The cost of public liability insurance will be centered on a variety of factors.  These include the size and type of the shop you own or operate, how many staff members you have, whether you manufacture or import your products and an array of other factors that might affect your risk. The main way of determining the cost of product and public liability for your establishment is to ask for a quote.  There are insurance companies that will provide direct quotes; however, a better option is typically to use an insurance adviser or broker who is knowledgeable of the retail industry. It is important to note that you can have your product and public liability insurance customized to satisfy your particular needs.  Therefore, it is vital to have a discussion with an insurance professional. To determine the type of public liability insurance is right for your company, you should talk to an insurance specialist right away.

Leave a Reply

Your email address will not be published. Required fields are marked *