Public Liability Insurance vs Commercial General Liability Insurance

Liability Insurance

As a business owner, it is easy to get tangled in the public liability insurance vs commercial general liability insurance mix-up. They might seem similar to the uninitiated, but these premiums have their pros and cons, and its up to you to decide which one works for your business.

Public Liability Insurance

A Public Liability Policy is the first line of defense for small businesses. It insulates you from claims made for damage, injury or lost property. For example, one of your carpenters fits a client’s kitchen, then one of the cabinets falls on the customer’s children. The child sustains a broken arm, and everybody agrees you are at fault. PLI insurance can cover the child’s medical bills, leaving you free and dry. Other third parties included in this cover are:

  • Clients who walk into your business
  • Members of the public who sustain injuries during an offsite job
  • Pedestrians who are injured by your sign

General Liability Insurance

General Liability Insurance is an extension of the PLI policy. It goes well beyond the injury and damage claims to cushion your business against liabilities from faulty products, advertising injury and attorney fees. If a competitor decides to file a lawsuit for stealing their advertising ideas, GLI should blanket you from this loss.

According to U.S Risk Insurance, PLI is the starting point of underwriting your business. Once you gain momentum, upgrade to a GLI policy.