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Liability Insurance FAQ
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Public Liability Insurance Companies

Public liability insurance companies provide coverage to businesses or individuals who face the possibility of being sued. This form of insurance is similar to general liability, but the coverage specifications and provisions are much more simple and defined. Many companies that sell this insurance are licensed to distribute policies in more than one state.

Companies that sell public liability insurance offer coverage that is based on a specific type of company's risks. Businesses that sell explosive materials need more coverage than those that sell boxes. Some companies may only sell low-risk policies or high-risk policies. There are also companies that offer coverage only to individuals or only to businesses.

Public Liability Insurance Companies - Claims

Once a customer buys a policy, a public liability company honors their claims, assuming the reasons fit with the provisions stated in the policy. When a claim is filed, the company reviews it, reviews the underwriter's rules and then awards money to the policyholder's injured party. The money is awarded for a personal injury or property damage that results as a negligent or wrongful act by the policyholder.

Some public liability insurance companies ask for more documentation than others do. Procedures for filing a claim are usually pretty simple within any system, but the amount and type of documentation varies. Individuals or businesses seeking coverage must always consider this aspect. There are usually claim guidelines or handbooks that companies distribute, which outline their policies for filing claims. This should help in making an educated decision about which provider to choose.

Public Liability Insurance Companies - Rates

Policies often vary in price and specifications from one state to another. Regardless of how many states a company operates in, they are not required to price their policies in a universal fashion. For example, a company operating in the state of Florida, where insurance is typically always higher, may price a public liability policy for a restaurant over $1,000 higher than an identical policy for the same restaurant in another state. State-based premiums are based on state-wide statistics gathered yearly.

When choosing between the many public liability insurance companies, it is important to choose one that uses a well-known underwriting agency. This is essential, since some scam artists posing as insurance companies often take money from people and don't actually provide any coverage. Before buying a policy from an unknown agency, be sure to verify the company's affiliation with the underwriter. There are only a few major underwriting agencies, so this shouldn't be a difficult task.