What is the purpose of Public Liability Insurance?

Public Liability Insurance is designed specifically to protect businesses from financial loss due to claims made by the public for injuries or damages that occur as a result of the business’s negligence. This type of insurance covers legal costs and potential compensation payouts if a customer or member of the public suffers an injury or property damage while on the business premises or due to the business operations. It is essential for businesses that interact with the public, as it helps mitigate the financial risks associated with unforeseen incidents.

While other types of insurance exist for various risks—such as protecting against employee theft, covering company property, or ensuring employee health and safety—these fall under different insurance categories. Public Liability Insurance focuses specifically on the liabilities that arise from business interactions with the public. Therefore, it is a crucial element in managing a business's risk exposure related to public interactions.