Public liability insurance can respond when a business becomes legally liable for accidental injury to a member of the public or damage to third-party property arising from its activities.
Examples might include a visitor tripping in a workshop, a technician damaging property at a customer’s premises or an item falling and injuring someone. Cover depends on negligence, policy terms, territorial limits and the declared business description.
What it does not automatically cover
Employee injury belongs under employers’ liability. Advice or design errors may require professional indemnity. Damage to property being worked on or held in custody can be restricted. Product-related injury may fall under a products-liability section.
Choosing a limit
Contract requirements, customer type, work locations and the severity of a plausible injury should be considered. A standard limit should not be accepted without checking obligations in leases or supply agreements.
Notify incidents and allegations promptly, even where the business believes it did nothing wrong. Do not admit liability or settle a demand without following the policy procedure.