What is Public Liability Insurance?
Public Liability Insurance protects your business when faced with claims of property damage, bodily injury and associated medical expenses that arise because of your business activity. This compensation that your business has to pay legal fees, costs, and expenses involved in the defence of these claims will be covered by such insurance.
As long as you are conducting a business in any form; be it a store, or if you are self-employed, there is always the risk that you can be liable for damages caused to another party. You should ensure that you are adequately covered for your business operations.
Does my business need Public Liability Insurance?
While there is no regulation in Singapore that requires you to get Public Liability Insurance, it is quite common for businesses to have Public Liability Insurance in place as a “baseline” cover, to give peace of mind.
This is especially true for businesses that have high public traffic flow into their premise. You never know what might happen on your premise. It is also not uncommon for large commercial buildings and large contract jobs to impose a condition of mandatory Public Liability Insurance as a condition for the signing of the agreement.
What does Public Liability Insurance cover?
Third party property damage:
This refers to any accidental property damage as a result of your business’ negligence. Damage one of your employees cause to other’s physical property is an example of third party property damage.
Third party bodily injury:
This refers to any accidental bodily injury as a result of your business’ negligence. If a customer slips on your wet floor, third party bodily injury would cover their damages.
Medical fees:
This refers to medical fees incurred due to accidental bodily injury, such as in the scenario above. Any initial consultation and subsequent follow up medical fees are also considered.
Legal fees:
This is insurance coverage for legal fees, costs and expenses that your business may incur. Generally, it will cover the cost of claims, and the compensations your business is directed to pay in the event of a claim being upheld.
Employees are not considered third party and are not covered under public liability. They are covered under Work Injury Compensation Insurance.
How much does Public Liability Insurance cost?
The cost of Public Liability Insurance is usually dependent on a few common factors.
Nature of Business:
Is the nature of your business high or low risk? Your property and liability risk could be higher and thus require a higher level of coverage.
Revenue Turnover:
Higher revenue equals more products sold and more customers, and thus more exposure to risk.
Number of Employees:
The more employees you have, the more workplace risk.
Territorial Limits:
Specific geographic areas or locations will be excluded from coverage, and coverage for such areas will incur a higher premium.
History of Claims:
The number of past claims your business has made will invariably lead to higher premiums.
Frequently Asked Questions
About Public Liability Insurance In Singapore
- Public Liability Insurance (PLI) covers claims against your business relating to injuries, accidental damage, bodily harm, property loss, and other events while on-premises. Meanwhile, General Liability Insurance (GLI) has far more comprehensive coverage. GLI insurance plans usually offer protection against losses incurred from defective products, workplace accidents, and injuries to employees and members of the public. It can also include coverage for legal and medical costs.
- No. Public Liability insurance is limited only to claims by members of the public for injury, illness, or damage resulting from business activities. Professional Indemnity insurance is what you’ll need to cover claims related to business negligence and professional mistakes.
- Renovation Insurance provides comprehensive protection to both contractors and property owners against loss or damage arising out of contract works. This product provides Contractors’ All Risks cover on Material Damage and Third party Liability to contract workers.
- Any property owner or business undergoing a renovation or construction project in Singapore can benefit from this type of insurance policy to protect against potential damages and losses.
- The cost of renovation insurance in Singapore varies depending on the value and duration of the renovation project and the Third Party Limit. Renovation insurance can cost anywhere from S$300 onwards.
- Some common exclusions from renovation insurance coverage in Singapore include damages caused by wear and tear, willful act of negligence, and property damage due to faulty design.
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