Businesses of all sizes need liability insurance.  In general terms, liability insurance covers a business if they are found liable for injury or harm.  Liability insurance covers the cost of legal defence, settlements and more.  This injury or harm could come in the form of damage done by the business’ product and in this case, the specific liability insurance needed is called products liability insurance.  Employer liability insurance, which covers injury to employees, is also an important aspect of liability insurance.  The third type of liability insurance that many businesses need to give consideration to is public liability insurance.

What is public liability insurance?

Public liability insurance is insurance that covers the cost of loss associated with injury to the general public at a company’s place of business.  It allows for payment of legal fees, covers settlement costs and medical services if necessary when a customer – the “public” aspect of this — is injured on the premises.  A customer could slip on loose floor tile, for example, and be injured.  This could lead to a lawsuit and a public liability policy would be vital.

What does public liability cover?

In case of injury to a customer, public liability insurance can pay for that customer’s medical treatment if the business is found liable for the injury.  It will also pay the company’s legal fees if the customer takes action against the company in a court of law following the injury.  If the business is found negligent and / or liable in the case of injury and a monetary settlement is reached in court, the public liability policy will pay out and cover the costs.

Who should buy public liability insurance?

Any business that sees a high volume of customer traffic should investigate their public liability insurance options.  Entertainment venues should be especially diligent in their pursuit of a public liability policy.  Stadiums, theatres, and pubs where liquor is served should be particularly careful in selecting public insurance coverage.  Customers who have been consuming alcohol are a major injury risk in these situations.