For decades, the standard approach to liability insurance was simple: pay a higher premium to reduce or eliminate the deductible. But the insurance market has hardened. Reinsurance costs have soared. Litigation funding has exploded, turning minor bodily injury claims into six-figure legal battles.
Consider a real-world example: A small hardware store owner in the Midwest installed new shelving. A customer reached for a paint can, the shelf bracket gave way, and the can struck the customer’s shoulder, causing a rotator cuff tear requiring surgery. Legal costs, medical bills, and lost wages totaled $47,000. The store’s PLIC SBD policy had a $10,000 SBD for BI claims. The owner paid the first $10,000 out of pocket—a significant hit for a business with thin margins—and the insurer covered the remaining $37,000. Without the SBD structure, the premium would have been 50% higher; but without that $10,000 in savings, the business might have defaulted on a supplier payment. plic sbd insurance
While public liability covers property damage, the “B” in SBD (when interpreted as Bodily Injury) is where the real exposure lies. Bodily injury claims are unpredictable. A soft-tissue neck injury from a falling shelf can cost $8,000 to settle. A fractured wrist from a poorly maintained step might cost $35,000. A child’s dental injury from a collision with a display rack? Potentially $50,000 or more. For decades, the standard approach to liability insurance
Many claimants choose to have their LTD or STD benefits deposited directly into a designated bank account for faster access. Litigation funding has exploded, turning minor bodily injury
These businesses face property damage risks (e.g., water damage from a burst pipe during a repair) but also bodily injury to clients or bystanders. A dropped tool striking a homeowner’s foot is a BI claim. PLIC SBD works well here because many trades carry a separate commercial auto and workers’ comp policy; the PLIC SBD becomes a backstop for non-employee, non-auto incidents.
You can reach their insurance help line at 800-245-1522 to verify the transaction details with a claim analyst.