Public liability insurance is an important form of protection for the companies who need it, but deciding whether or not to add it to your general liability insurance can be a hassle if you’ve never dealt with this kind of business insurance before. The difference between coverage types can be hard to spot since general liability protection includes public liability coverage. It also includes many other types of liability, like third party liability for damages related to the workmanship of your products or to services like repairs. For some businesses, the public liability coverage in a general policy is enough, because they only infrequently have guests on-site and their facilities are not open to the public.
When Businesses Need PLI
Adding PLI means taking out extended coverage for that portion of your general liability insurance. It’s designed to make sure your general policy doesn’t hit an annual cap due to claims in this area, so you are not left unprotected in the other areas it covers if you’ve got a large claim or several claims that take you to the general liability coverage cap. This helps you avoid overbuying the general policy. PLI policies almost universally require an existing general liability policy to be valid, because this insurance is meant to extend your protection. It’s not a replacement for general liability insurance.