Public liability insurance

As a Canadian business owner, you may be familiar with the mix of legal requirements and precautions to take, to run and maintain your business successfully. While keeping customers, employees and other members of the public safe is a top priority for any business, accidents still happen. That’s why you may want to consider Public Liability Insurance coverage to protect you and your business from legal action if you are found responsible for damaged property or a bodily injury.

What is public liability insurance?

You may have heard of general liability or business liability insurance, but what is public liability insurance? Public liability insurance protects businesses against third party claims made by a customer or another person where property damage or bodily injury occurred.

Public Liability Insurance:

  • Is a coverage that can be added to your business policy.
  • Will cover claim costs made by someone in relation to your business activities.
  • Protects you from any incidents that happen on your business premises.

Being part of the community means that businesses often interact with the public. This can open you up to risks even if you take precautions and display warning or hazard signs. With public liability insurance, your insurance company will pay for legal costs (up to the limits of your policy), if someone sues you for any damages or injuries incurred on your property.

Common public liability insurance coverages

Coverage through public liability insurance protects you against various accidents like someone being injured from a fall caused by a wet floor or an out-of-place trolley. Here are some common things covered by public liability insurance:

Bodily injury

If someone is injured, public liability will cover expenses up to your policy limits.

Property damage

Public liability would help cover any damages to a third party’s property. For example, if you own a store and one of your employees accidentally spills something on a customer’s belongings, this policy would help pay for those damaged items.

Legal expenses

This insurance would help pay for an attorney to represent your business, if a customer and/or someone else in the public files a lawsuit.

Completed operations

Any work or contracts of the insured that involve multiple job sites could be covered.

Tenants’ legal liability

If you are a tenant of a building or storefront, any damages caused to the space you rent may be covered.

Who needs public liability insurance?

Here’s why public liability insurance is important for business owners:

  • Any business could face a claim or lawsuit from an accident, which could have a serious financial impact on the longevity and success of your company.
  • Your location and the kind of business you operate will influence the type of policies you’ll want to add on to your business insurance. Together, the policy add-ons will make sure that your insurance plan doesn’t have any gaps or holes.
  • These insurance add-ons are affordable and give you the peace of mind to operate your business without the extra worry of claims or legal fees.

Contact BrokerLink today to learn more about public liability coverage

Legally, all Canadian businesses with employees must have specific coverages in place in order to operate. Some of the coverages required by law are workers’ compensation, disability and unemployment insurance. While public liability insurance isn’t required, all businesses should have some kind of liability coverage in place.

At BrokerLink, we understand that running your business takes a great deal of your time, energy and focus. That’s why we’re happy to review your commercial needs and do the insurance shopping for you. We’ll help you make a more informed decision when choosing a plan that works best for you. Give us a call today for more information.

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Public liability insurance FAQs

Do I still need liability insurance if I own a small business?

Yes. The size of your business doesn’t matter when it comes to accidents – big or small. Having a business opens you open to many risks, so liability insurance should be considered for your insurance plan.

What is covered by public liability insurance?

Coverage for bodily injury and property damage to a third party are the main focus of public liability insurance.

Is bodily injury covered by public liability insurance?

Yes, it can be. Bodily injury or even death to a third party is part of the public liability coverage.


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