What Is Public Liability Insurance and Do You Need It for Your New Business?


A business is an investment you need to care for to keep it from falling apart. In order to keep your business safe, one thing you’re going to need is insurance. More specifically, you will need to invest in public liability insurance. This type of insurance is a necessity among all kinds of businesses. Read on to learn what public liability insurance is and why you need it for your business.

An Overview of Public Liability Insurance

Before investing in insurance, it is important to have a better understanding of what it is first. Public liability insurance is what pays for any property damage done to the public, because accidents happen. It also protects you and your business from lawsuits for injuries or death. However, this coverage can only be applied if such an event happened on your business’s property, and it only applies to the public, not employees or other people associated with your business.

What Public Liability Is Able To Cover

We’ve briefly touched upon what this form of coverage can do for you. Let’s go into a bit more detail. In regards to property damage, let’s say one of your employees accidentally bumped into a customer, which caused them to drop and break their phone. Your insurance policy would be able to cover the cost for a repair or replacement.

In the case of an injury, if a person were to slip and fracture their arm, public liability insurance covers their medical expenses. As for lawsuits, this coverage can help pay for a lawyer to represent you in court should a lawsuit be filed against you.

Is Public Liability Insurance Mandatory?

Public liability insurance is important, but interestingly enough, it’s not mandated by law. It’s something of an optional plan, an extra layer of protection. That doesn’t mean you should skip out on it just because it is optional. Again, your business is an investment and will require all the protection you can get for it.

Are There Any Alternatives?

There is an alternative to public liability and that’s general liability. General liability insurance covers exactly what public liability does, but it also covers a bit more.

General liability can cover for personal injury and advertising injury. For those who don’t know, advertising injury is when a business can be sued for putting out misleading information and false advertising.

Protecting your business is simple with the right form of coverage. Public liability can keep you from losing thousands from lawsuits and protect your reputation. If you want something more, then general liability is the way to go.

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