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A consumer watchdog is to carry out an investigation into the public liability insurance market as businesses raise concerns about rising insurance costs - Leaving Cert Business - Question C - 2009
Question C
A consumer watchdog is to carry out an investigation into the public liability insurance market as businesses raise concerns about rising insurance costs. (i) Expla... show full transcript
Worked Solution & Example Answer:A consumer watchdog is to carry out an investigation into the public liability insurance market as businesses raise concerns about rising insurance costs - Leaving Cert Business - Question C - 2009
Step 1
Explain the term public liability insurance.
Answer
Public liability insurance is a type of insurance that protects the business against financial loss resulting from claims made by members of the public or consumers. It covers incidents that may occur as a result of accidents on the premises, for example, if a consumer slips and falls while on the business property. The policy ensures that the business is financially safeguarded against legal claims arising from such incidents.
Step 2
Outline three types of insurance, other than public liability, that a business might have.
Answer
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Employer Liability Insurance: This insurance covers businesses against financial loss due to claims made by employees as a result of incidents occurring within the workplace. It is essential for protecting the business from legal actions caused by workplace injuries or illnesses.
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Fidelity Guarantee Insurance: This type protects the business against financial loss resulting from theft, fraud, or dishonesty committed by employees. It ensures that the business can recover losses incurred due to the wrongful actions of staff.
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Product Liability Insurance: This insurance protects businesses from financial loss in the event of a customer claiming damages as a result of a defective product that they have purchased. It is vital for businesses that manufacture or sell products, safeguarding them against legal claims related to product safety.