15 May No Comments admin Blog ,

One of the biggest financial blunders you can make as a business owner is to overlook the need to protect your business with the right insurance policy. Now, we understand that merely recognizing the need for the right insurance is not enough; you need to understand what right policy actually stands for.

The Difference between Public Liability Insurance & General Liability Insurance As a leading provider of business insurance in Victoria, we know how confusing the wide array of insurance product can be. Through our blog, we try our best to answer some of the most common confusions and questions insurance consumers face. Today, we will discuss two basic types of liability insurances you can choose from: the public liability insurance and the general liability insurance.

What Do They Cover?

General liability insurance covers almost everything in general. It can include personal injuries, loss of products, intellectual property, etc. It is why it is the most commonly chosen policy by small and new business. For instance, if there is a theft in your store, this insurance will cover the cost. What it doesn’t cover is professional liability and worker’s compensation.

A public liability insurance, on the other hand only covers the damages or injuries caused to a member of public, i.e., the customers while they are on your business property. If a stack of cereal falls on a customer in your store, your PLI will cover the damages including medical and legal cost involved. Remember, this cost is already included in GLI.

How Much do They Cost?

Since general liability insurance is more comprehensive, it costs more than a public liability insurance. However, it is also one of the reasons many smaller business resort to a PLI, which does offer protection to an extent but still leaves a lot of risk.

Which one Should You Go For?

You might want to save money with PLI, but one thing that should be considered is whether the risk is worth taking. There are many businesses that have and can get away with a simple PLI, and then there are some who came crashing down just because they didn’t have a comprehensive coverage.

It is best to compare your business liability insurance options and quotes and discuss your needs with a professional business insurance consultant in order to make a decision that will fully protect your business in Victoria.