Business insurance is vital to protecting your investment and minimising your personal financial risk in Papua New Guinea (PNG). This includes getting yourself an excellent public liability insurance.
What exactly does public liability insurance entail and why does your PNG business need it?
What is public liability insurance?
In essence, public liability insurance protects you for negligent acts to third parties. This may sound strange but any business that deals directly with members of the public is at risk of claims of property damage or even personal injury as a result of your negligent acts.
This means that if property belonging to a third party or person is injured by the negligent act by you or your employees during the course of providing a business service, someone may take legal action against you to claim compensation for their loss.
- For example: A customer slips on a wet floor in your business premises and badly injures their back. They could then make a claim against your business by arguing that it was your responsibility to create a safe environment for members of the public. If they win you may be required to compensate them for their injury and pay their legal costs.
Public liability insurance protects you against these claims. It does this by covering legal costs and court fees as well as covering negligent incidents on your own premises. Without this insurance you could faced the whole compensation claim as well as all of the legal expenses.
Public liability insurance usually covers negligent acts such as:
- Damage to property or personal injury to a third party caused by your negligent act.
- Disrepair which leads to accidents. For example ripped carpets, wet floors or broken doors.
- Injuries caused by your negligent act to a third party.
- Negligent Acts that caused damage to a third party property.
Why do PNG businesses need public liability insurance?
Public liability insurance should be considered essential for your businesses operating in PNG, especially those that regularly deal with members of the public.
This is for the indisputable fact that negligent acts do happen, whatever the precautions you put in place.
Claims that fall under the public liability policy are also without exception extremely expensive. Even if you prove yourself not to be liable, the legal costs to do so could be very expensive.
Finally it is not uncommon for businesses you wish to work with to demand evidence of public liability insurance. Therefore not having this insurance could hurt your company's plans for expansion and partnership on your journey forward.
If you're looking for a business insurance plan that will give you the protection you need to grow confidently, get in touch with the team at Trans Pacific Insurance today.