What’s a Public Liability Cover Note?

“The customer is always right✅” is easily one of the most common phrases in the business💼 sphere. And for good reason: how can a business thrive without loyal, happy 😁 clients? Of course, they are always right! But for many businesses, part of putting the customer first is a public liability cover note.

Bear with me for a second, and let’s apply this to a scenario involving an influencer. Imagine that you’re holding an event and a fan fractures an ankle🦴 because of a wet💦 floor. Now, the fan is hurt, angry, and wants compensation. What if the fan comes after you, the influencer, as well as the venue 🤔? Will you face a lawsuit or defamation of your good name?🤷🏽‍♂️ 

Not at all! Luckily, influencers and other business owners can be insured for all this with the aid of an effective public liability cover note. In this article, you’ll learn what a public liability cover note is and how you can use one to protect your hard-won business. 

What’s a Public Liability Cover Note?

Also commonly known as commercial general liability insurance, a public liability cover note is a document 📃 issued by an insurance company. It provides optimum protection to a business in case of any third-party liability. This can arise out of an injury to the body or personality of a customer or damage to the property of an organization or general public👬. 

The Public Liability Insurance Act of 1991 is the law backing the need for this insurance. Lawmakers created this act to help businesses provide compensation for damages to consumers while avoiding bankruptcy, defamation, and other negative consequences linked with legal suits involving the public 👨‍👩‍👧‍👦.

Why and When Is There a Need for a Public Liability Cover?

Let’s start with a tragic story. On the night of May 6, 2020, a gas💨 leak at the LG Polymers Chemical Plant in Andhra Pradesh, India, killed 13 people and injured thousands more with respiratory problems😷. This devastating occurrence was due to the leak of the dangerous gas “Styrene” from tanks. 

The company responsible, LG Polymers, had policies on the ground for such occurrences. It used these to cover the cost💵 of providing immediate assistance to those affected by the accident🤕 and provide compensation to families.

The example listed above is just one of the situations where businesses can be obligated to compensate for harm to consumers or the general public. A company can also need to pay out for privacy breaches, failure to protect intellectual property, faulty contracts, lack of detailed disclaimers, and so many other reasons.

Basically, this form of insurance benefits any business that:

  1. Interacts with clients regarding work on a frequent basis.
  2. Has close contact with client’s assets and personal information (e.g. IT professionals, websites, etc.)
  3. Involves usage of third-party sites for business purposes and activities
  4. Represents a client’s business or work💼
  5. Requires usage or production of hazardous☣️ materials during work

 If any of this sounds like you, it’s a good thing you found this article! It might be time for a public liability cover note. 

How Public Liability Cover Notes Work

The main function of a Public Liability Cover Note is to provide insurance for:

  1. Injury🤕 to body or personality: Expenses💰 incurred due to physical or mental injuries to customers and members of the public.
  2. Legal Expenses⚖️: The cost of hiring the services of an attorney to represent the business in the case of a lawsuit.
  3. Property Damage: Damage caused to a third party’s property. For example, if cargo from a truck falls and damages a fan’s car 🚗 at an event, the policy covers the repair of the car.

It should be noted that Public Liability Cover does not include everything. It won’t cover harm or damage to the property of any employee within a business, full-time or part-time students, or any other worker. For any of the above categories, check out our article on employer’s liability coverage. 

What to Do to File a Public Liability Claim

After investing in public liability insurance, it makes sense to know the requirements involved in making claims. In the case of injury or accident to a customer or third party, it is important to:

  1. Keep records of every detail, either in an accident record book or an informal record. This could also include photographs📸 to serve as visual evidence.
  2. Contact the insurance company as soon as possible to prepare them for an impending claim
  3. Minimize the damage caused by the occurrence. For example, call an ambulance if someone hurts themselves.
  4. Review expectations in such a situation. This is, most times, outlined in the insurance policy note. Be aware of any actions that invalidate the policy and avoid them.
  5. Prevent a future recurrence by carrying out risk assessments and training staff.

As long as you’re following these rules, you should be able to claim public liability coverage under your plan.

Help with Your Public Liability Cover Note

For a public liability cover note to be effective, you must ensure the contents match and completely cover the risks and accidents involved in a business. Only a trained attorney can carefully assess this.

Influencers and internet workers, therefore, should seek legal advice⚖️ to protect themselves. If you’re an influencer, taking this step will protect your clients and help detect any loopholes in your insurance documents. Protect your business and contact📞 us now!