Public liability insurance can cover you and your business if someone is injured, or their property is damaged, during the course of your work.
What is public liability insurance?
Public liability insurance is designed to cover you if your business becomes legally liable in the event someone is injured or their property is damaged as a result of dealing with your business.
Unlike professional indemnity insurance, which covers advice and services you provide, public liability insurance covers injury and damages caused by physical surroundings and property.
For example, if someone slips on a wet floor in a shop and sustains an injury, public liability insurance would cover the cost of compensation and related expenses.
What does public liability insurance cover?
Typically, public liability insurance will cover you for the following:
- injury to someone else – for example, if someone trips over equipment at your business and injures themselves
- damage to someone else’s property – for example, if you’re moving furniture for a customer and accidentally break their glass coffee table
- legal costs – legal defence and compensation costs related to a claim against you
- injury or damage caused by products – some policies cover products as well, such as if someone gets sick after eating undercooked seafood at your restaurant
- damage to property in your control – for example, if you're parking a customer’s car and accidentally scratch the side mirror.
Some policies will also allow you to get cover that extends beyond your normal business activities. For example, a cafe owner might choose to be covered for food served to employees, in addition to their regular customers.