Employer's liability insurance protects your business against the financial consequences of damage to third parties. This means that the insurance covers the liability claims that a third party incurred from the operating activities of a company.
Public liability insurance is part of the basic needs of any business. The type of operations conducted determines which types of risks are at the foreground.
The following risks can be covered by a public liability insurance:
Investment risks the Sub-Investment risk is defined as any damage arising from the liability as owners or tenants of commercial real estate. Example: Protection for a building operator when a loose tile falls and damages a parked car
Operational risks operational risks refer to the damages arising from operational processes. Example: In case of replacement of a washing machine, the kitchen equipment is damaged by one of your technicians. This needs to be replaced in the sequence. All the costs can paid from the employer's liability insurance. Product risks product risks refer to the damages caused by construction or development defects of products. Example: You are a cell phone manufacturer. The battery of your latest product is faulty. This causes overheating, which can lead to an explosion of the mobile phone.
In addition to insurance for the above mentioned-risks, a person can get coverage against various special risks. However, these plans do not cover the public liability of loss or damage sustained by the entrepreneur or their family personally. Members of the liberal professions (e.g. doctors, pharmacists, architects) can take out voluntary insurance and are thus protected from the risks specific to the exercise of their profession.