Public Liability Insurance

What Does Public Liability Insurance Mean?

Public liability insurance is a policy that covers loss or damage to a third party occurring during the course of professional duties or while on the business premises of the policyholder. It also covers legal fees in the event of litigation.

Insuranceopedia Explains Public Liability Insurance

A public liability insurance policy is essential for anyone whose business or job involves regular interaction with people, whether as an electrician visiting homes or a store owner receiving clients daily. In the United States, this same kind of coverage is usually sold under the name general liability insurance.

This policy covers bodily injury or property damage. For instance, an electrician might cause faulty wiring in a client’s home, or a customer in a shop might accidentally bump their head against a wall. If the affected parties file a lawsuit, public liability insurance proves valuable, as it will cover the associated legal fees. Electricians and other contractors who work in clients’ homes often carry public liability protection as part of a broader electrician business insurance policy.