Public liability is a vital form of insurance for many businesses. Companies that interact with the public are exposed to potential hazards that a general liability policy will not cover. Here are the important facts about public liability insurance to help you determine if it is a necessary policy for your business.
Public liability is important for any business that deals with customers in person. It is also crucial for a company that has foot traffic moving through business-owned or contracted property. A PLI policy should be purchased if your business includes one of the following professions:
If you conduct business similar to one of these professions, or you specialize in an industry that interacts with a third party, contact an insurance provider to find the right PLI policy for you.
Customer and Third-Party Protection
A PLI policy is vital since it covers liability with parties that are not employed by the business. Some of the main protection provided by a PLI policy can include:
- Cost of repairs
- Legal expenses
- Medical fees
PLI is essential for any business that exposes non-employees to damage or injury. Investing in a public liability insurance policy is the best way to protect your business along with the general public.
When you own and operate your own business, there is always a level of risk involved. Owning a boat dealership is no different. Some risks often associated with selling a variety of marine products include theft, damage, equipment malfunctions, and injury. However, when you meet the proper boat dealer insurance requirements, you can help mitigate potential risks. Before you commit to a policy or provider, it’s essential to know and understand what’s available to you as a dealer first.
Common Coverage Options
Since there is a wide range of coverage options within the industry, it’s always good to educate yourself on potential possibilities before entering into a contract or writing any checks. Some of the most common coverage options include:
- Property Liability Coverage – This insurance plan provides financial protection from risks that involve property damage or loss.
- General Liability Coverage – This coverage is broad by nature because it’s intended to ensure businesses with a wide range of exposures.
- Truth in Lending Coverage – Provides boat dealers potential protection if they fail to adhere to the Credit Protection Act or Truth in Lending Act.
- Errors & Omissions Coverages – If records or paperwork are managed poorly and result in legal claims, this coverage offers potential payments to resolve the issue.
Peace of Mind
There are risks associated with running any business. This is why obtaining the proper insurance coverage for your boat dealership is vital. When you have the necessary coverage, you will be less likely to get caught in a sticky financial situation.
According to the experts at World Wide, any individual or individuals that design, manage, or administer benefit plans to employees are subject to fiduciary liabilities. Individuals and/or employers that are authorized to administer any aspect of a plan, whether health and welfare, pension programs, profit-sharing, savings, or otherwise, can be held liable when a breach of duty is suspected or alleged.
The Challenge for Staffing Firms
Those working for a staffing agency find themselves in a unique employment situation. While an employee may be filling a specific role with one company, the individual is solely employed by the staffing agency. As a result, the administrative team at the staffing agency is responsible for overseeing the benefits to which an employee is entitled. Due to the Affordable Care Act, staffing firms have a potential requirement to extend certain healthcare benefits to their employees.
The Potential for Litigation
Staffing agencies must follow a mandate to both offer minimum coverage and make it affordable, either using fully or partially self-funded plans. These employers must keep up with coverage offerings, premium differentials, auto-enrollment, wellness incentives, W2 reporting, and more. All employees must receive timely communications concerning plan options and alternatives as well as the ongoing administration of their benefits. Any error or oversight, no matter how small, presents a fiduciary liability.
Risk management in this area includes using automated processing to help reduce human error, as well as carrying an insurance plan that addresses fiduciary duties.
Most professionals understand the importance of liability coverage or malpractice insurance. If you are in an industry where you are at risk for lawsuits or litigation, then you may want to consider tail coverage.
What Is Tail Coverage?
A tail policy or an extended reporting period endorsement provides you with a way to report claims after your policies expire. This is not an extension of your policy period but instead a safety net in case you face any claims against you after your policy expires.
Do You Need Tail Coverage?
Say that you leave your current job and your insurance expires. This might not seem like a big deal at first, but then imagine what could happen if someone files a lawsuit against you for work that you performed at your last job. For instance, if you were a lawyer and you advised a client and he or she filed a lawsuit after you left the firm or your insurance was canceled. You would have to pay for legal fees on your own. Tail coverage protects professionals when this happens. Your insurance may expire, but you still have coverage for work that you already completed.
Tail coverage policies are a safety net. They provide you with the reassurance that you can handle any lawsuit or liability claim that comes your way.
As a business owner, you are responsible for everything that goes on in your business, even if it means an employee or a contractor you hired created a disaster. Contingent liabilities are the incidents that occur outside your scope of direct control but yet you and the business are financially responsible for. No matter what kind of safety policies you put in place or how thoroughly you stress care and quality in daily operation, you can still find yourself being sued for someone’s mistake.
Same Coverage, Different Name
Contingent liability insurance is a way to protect your company from the financial fallout of dealing with employee, contractor, or agent error. It might also be referred to as vicarious liability or indirect liability. Regardless of what name it goes by, the premise of liability means you are legally responsible for another person’s poor work or wrongdoing according to the workings of legal relationships. Employees are generally the biggest risk with vicarious liability, and whether or not they were abiding by company policies, their actions are pinned on the company.
Should a customer decide to sue your company, you could be looking at thousands and upwards of million dollars in legal fees, lost productivity, settlement costs, and reputation management efforts. An insurance plan addressing vicarious liability helps offset these costs, keeping your business from going under.
If you’re trying to obtain boat insurance cost estimates, you’ve probably seen that prices and coverage can vary greatly. Costs can run anywhere from $300 to over $1,000 per year, depending on a number of different factors. For example, how frequently you use the boat, the type of boat you have, your driving history, and what area you reside in will all have an impact on your insurance costs. The type of coverage you select will also impact costs, but it’s very important that you understand what kind of coverage you’re getting.
Liability refers to anything that’s determined to be your responsibility. There are two primary types of liability insurance:
Bodily Injury (damage to a person)
Property Damage (damage to an item)
You may be held responsible for medical bills if someone in your boat gets hurt, even if you’re not at fault.
Uninsured Boaters’ Coverage
Not everyone has insurance, and if you get hit by someone who doesn’t, this coverage will handle any related expenses.
Personal Property Coverage
This coverage can be used to replace all kinds of items that could be damaged in a boating accident. From boating equipment to luggage. Again, your boat insurance cost will vary depending on what type of insurance you select and the levels of coverage you choose, but it’s important to understand your coverage.