Public liability insurance is a type of business insurance that covers claims made by the general public for medical expenses and other costs resulting from injuries, death, and property damage involving your business. It is an older form of general liability insurance. Public liability insurance is designed to protect business owners and their assets against losses associated with injury, property loss or damage, and other losses incurred by members of the public and/or third parties while on the business premises. This type of insurance covers the cost of third-party injuries and damage claims attributed to your business, including incidents at your business and locations related to your work, such as a clients home. Public liability insurance does not cover injuries or damages that happen to yourself, your business, or your employees.

Public liability coverage is especially important for businesses that regularly deal with the public, whether it’s on-site at your business, a client’s business, or at someone’s home. Its also important for musicians and entertainers who perform in front of an audience. Even if you conduct business online, youd still benefit from this coverage since you interact with people when receiving deliveries or picking up supplies.

In many countries, liability insurance is a compulsory form of insurance for those at risk of being sued by third parties for negligence. The most usual classes of mandatory policy cover the drivers of motor vehicles, those who offer professional services to the public, those who manufacture products that may be harmful, constructors, and those who offer employment.

Regardless of compulsion, however, most organizations should consider public liability insurance to protect themselves from potential lawsuits and claims.