Top Myths about Public Liability Insurance Busted
There are various misconceptions about the public liability insurance Singapore. Following are some of those myths that have been busted.
Myth 1: Purchasing a cover is compulsory
This is not true at all. The law does not make it mandatory for your business to buy the public liability insurance. But, practically speaking, when you or your personnel have to deal extensively with the public and customers visit your workplace quite regularly, PL insurance is a “must have”. Else, you or your employee could damage a property or cause injury to someone while at the workplace.
Even if you are running a home based business, it may still be possible the public members or customers visit your house for meetings. So, it is recommended to look for an appropriate cover so that if they fall or trip and claim for compensation for their injuries, you are adequately covered.
Myth 2: Your financial loss can be covered by PL insurance
White, it is quite a simple assumption to make. The statement is just partially correct. Ideally, a standard insurance policy does not provide coverage against claims for a financial loss. But it can still cover any financial loss due to injuries or damage.
Myth 3: PL insurance is only required for manual trades, contractors or builders
This myth is a not difficult to explain. But while it is true that PL insurance is more exposed to liability losses and so need thus coverage more, that does not mean that non-manual or professional trades do not suffer from huge financial claims from aggrieved parties though it may not be at a similar frequency. For instance, you have an IT contractor is working in your office, a serving lady may trip over his laptop bag and fracture her arm in the process. She cannot come to work for around 30 days and holds you responsible for this. Tripping and slipping are likely to raise innumerable claims for compensation.
Myth 4: PL insurance policy can be costly
While it is true that there are some claims that can amount to several hundreds of thousands of dollars or even higher for severe injury losses, such incidences are not very common. The fundamental of insurance coverage is that it operates on the law of big numbers. Since a large number of businesses are purchasing this cover, most of the times the policies are reasonably priced so that companies of different sizes and types and individuals from different financial backgrounds can afford them easily.