Public Liability Insurance – What Is It?

Public Liability Insurance – What Is It?

Liability insurance is a part of the general insurance system of risk financing to protect the purchaser from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy.

The word insurance is almost known more or less to every people in the world. There are numerous kinds of insurance policies is available in today’s market. The natures of these insurances are different from one to another.

A general people only know two or three kinds of insurance policies, like life insurance, health insurance, and auto insurance. But apart from these there are several other insurance policies available in the market, and most of those policies are as important as life insurance or health insurance; only a very few people know the importance of those policies.

Public liability insurance is such a type of insurance policy. Though it is very important for every individual and corporate house, most people don’t know the importance of this insurance policy and don’t possess it.

In this article, we will discuss what public liability insurance is and how that is very much important for every individual and corporate house.

Public insurance is an insurance policy, which helps the policyholder when any person from the public gets injured on the premises of the policyholder.

When the injured person sues the corporate house or the individual, then the public liability insurance pays the amount to the injured person, if the law decides any.

When it will Come to your Rescue

Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities. Public liability insurance covers the cost of compensation for personal injuries. loss of or damage to property. death.

Imagine a situation. One of your friends comes to your home for some reason or another. Unfortunately, he slips on the slippery pavement from your roof and gets severely injured.

After that, if he logged a case against you, then you may have to pay him compensation. The amount of compensation will be decided by the court and the figure of the compensation can be any.

If you pay the compensation to your friend, then that may burn a hole in your wallet. You may have to lose years’ income, in order to pay the compensation.

In this case, if you have public liability insurance, then the insurance company will pay the compensation to your friend instead of you and you don’t have to hurt your wallet to pay the compensation.

If you are a corporate house, then you need this public insurance more than an individual. As a corporate, you have more dealings with the public.

More people will come to the premises of your business and there is a greater chance of public liability. Public insurance will keep you risk-free in case of any public injured in your premises for some reason or other.


Businesses that involve working in public places or private homes such as plumbers, electricians and building contractors should also consider a policy. If there is any chance a member of the public could be injured or have their property damaged while you are working, then you should have public liability insurance.

Most of the individual thinks that there is no need for public insurance in case of him or her, but this kind of thinking can take a person to disaster. If you want to play safe and don’t want any kind of negative surprises in your life then you should go for public liability insurance.

There are some countries, where public liability insurance is mandatory for every business house. So, if you are doing any kind of business then you should check out your local laws.

Friends, If public liability insurance is mandatory then there is no option in front of you, other than going for that. If your local law doesn’t make public liability insurance mandatory then also you should have public liability insurance in order to keep surprises out from your business.

If you refuse to buy a public liability insurance policy, then you may save a few bucks; but who knows a day may come, you have to pay millions of dollars as compensation.

public liability policy could cost from as little as $450 for a sole trader needing the minimum cover, through to $10,000+ for larger or higher-risk trade businesses. Click the button below for a quote on your public liability insurance, or read through the rest of our guide below.

Public liability insurance covers injuries suffered by visitors to your business property. General liability coverage is more extensive, including visitor injuries, employee injuries and defective-product damages.

Is Public Liability a legal requirement? Public Liability insurance is not a requirement by law, but many clients will insist that you’re covered for public liability before allowing you to begin work. Some trade associations will not allow you to register with them unless you have a valid liability policy.

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The Need For Public Liability Insurance For Any Business in 2021

In one way or another most businesses come into contact with the public. If a business is in contact with the public at all, even for a brief period of time, then it is essential that the owner protect his business by purchasing insurance.

Public Liability insurance offers the ideal coverage for businesses of this nature regardless of the industry they are in.

Whether a business has members of the public visiting their office for services or whether they are in a business to purchase products, Public Liability insurance will protect the business from having out of pocket expenses due to a claim.

Public Liability insurance in Ireland is not generally required by law however when competing for contracts or work most contractors and local authorities will expect the competing business to have Public Liability insurance to protect them from any claims arising.

If the competing business or sub-contractor doesn’t have a policy providing coverage to members of the public then the odds of their business succeeding others are slim.

Some contractors even require sub-contractors to have Public Liability insurance before they are even allowed to place a bid!

Arranging for Public Liability insurance provides compensation to the public for several different claims. Benefits may include general costs, legal fees, medical costs, compensation, and economic damages including product coverage as well.

Having this type of coverage policy protects the business while protecting the public at the same time.

If an accident is caused by the business, damage to third party property occurs or legal fees arise due to a claim then compensation is provided through the business insurance and the business is not required to pay any out of pocket expenses.

When a claim is filed even the legal fees will be compensated for by the insurance. Another coverage that is typically provided is called Product Insurance.

This insurance provides compensation in the event that a member of the public incurs a loss due to a defect in the product being distributed or designed by the business.

The consequences of not having Public Liability insurance may be extreme for some businesses. The amount of claims being filed has risen in recent years and the amount of successful claims has increased as well.

Lawyers are offering “No Win No Pay” opportunities to the public which basically encourages the public to file claims for things such as a simple misunderstanding or a very minor injury.

With lawyers offering this type of service it is important that a business be able to defend its honor. Defense lawyers can be quite expensive and without insurance, the business must pay for the legal fees out of pocket.

If a business is found legally liable for a claim and they do not have coverage then they are responsible for compensating the claim out of their pocket as well. This can be detrimental to any business as claims can be very high.

With brokers offering so many different types of coverage and combining so many different policies it is very important that a business know what type of coverage they are getting under their policy.

Public Liability insurance is often combined with other insurance such as Employer’s Liability insurance. When purchasing a policy discuss the details with the broker and make certain that the business will be purchasing what it needs in order to be protected.

Protect Your Business From Liability Claims Using Public Liability Insurance

Businesses that are directly associated with the public are prone to liabilities as there are chances of accidents, even after making a conscientious effort to avoid them.

If your customer or any other person sues you for death, injury, or property damage at your premises and if you do not have public liability insurance, you may face significant costs that can cripple your business.

These liabilities pose a severe financial threat to businesses. Apart from the claimed amount, the high legal costs incurred in defending the cases filed by the third-parties are also to be paid by the company.

Hence, having public liability insurance is very important to get out of these unexpected heavy expenses.

Read on further to know about the frequency of personal injuries at business places and how the public liability insurance helps in protecting your business from these claims.

Statistics of injury claims:

According to the reports released by the Injuries Board of Ireland, there were 8,645 personal injury claims lodged in the year 2009.

Among them, one in six (17%) were related to public liability, with an average award amounted to 23,143 Euros for each claim.

Nearly 51% of these accidents took place in privately owned establishments, 25% in retail/shopping outlets, and 19% in pubs/night clubs or restaurants.

With this high rate of accidents, businesses are required to take public liability insurance to stay guarded of future legal claims. Listed below are the benefits of having public liability insurance.

Reimbursement of claimed amount along with legal fees:

Public liability insurance compensates you with the amount of reimbursement claimed by the third-party and also the money paid as legal charges for fending such claims.

This is especially significant since you are required to pay large amounts of money as legal fees.

Covers expenses related to property damage:

In addition to death and injury, the damage or loss caused to the property of the third-party is also covered. Hence, a public liability policy provides the third-party with the repairing costs of the damaged property or the cost needed to buy a new property.

Offers recovery expenses:

Another good thing about the policy is that it offers recovery expenses. Along with the claimed amount and legal fees, the policy also provides medical aid to the injured person.

This insurance covers costs related to hospitalization, treatment cost, medical bills, rehabilitation, and other damages. Some policies also offer domestic help and other aids to help the victim recover quickly.

What are the benefits of Business Insurance?

  1. Provides bodily injury coverage.
  2. Provides property damage coverage.
  3. Covers for advertising liability.
  4. Helps minimize financial losses.
  5. Coverage for lawsuits and settlements.
  6. Helps promotes business continuity.
  7. Aids in risk-sharing.
  8. Protects the business image.

Provides assistance in legal dealings:

While there is no statutory requirement, your business should be covered by public liability insurance in the following circumstances: The general public can visit your premises (including delivery personnel and customers, even if you have a home-based business);

But insurance can make or break your business. Without the right insurance, a theft or fire can cause devastating losses. A personal injury lawsuit can leave you struggling just to pay the legal fees and yet many small businesses owners don’t take the time to evaluate their needs and get appropriate coverage.

The main advantage of liability policy is that the business owners do not have to constantly worry about the legal fights. The insurance company deals with all the legal complexities associated with the claim.

For instance, if you lose the case, the insurance company pays the compensation and the legal fees, and if you win the case, it collects the legal fees from the injured party. This way the insurance company eliminates your legal hassles.

If someone sues your business and you don’t have public liability insuranceyou‘ll have to pay for a solicitor yourself. If the claim against you is successful, you might have to pay a hefty settlement – and you might even have to cover the legal fees for the person suing you.

Protects the employees:

The public liability insurance cover helps and protects the employees in case they are responsible for any accident that injures or damages a third-party or his property due to negligence at work.

As they represent the company, the policy indirectly protects them from legal costs. This shows the company’s concern towards its employees.

In order to survive in this litigious society, every business needs public liability insurance to protect itself from the risks, costs, and compensations associated with accidents.

Difference between public liability and commercial general liability

PLI policies represent a minimum amount of liability coverage, covering the liabilities against public claims of injury, negligence, and accidents. GLI, in contrast, is more comprehensive in that such a policy protects against losses incurred by the public as well as vendors, employees, and even the business owner(s).

Liability coverage is a specialized form of business insurance, designed to cover the policy holder’s legal responsibilities in incidents or events covered by the policy.

Business owners in fact have two major types of liability insurance to select from General Liability Insurance (GLI) and Public Liability Insurance (PLI).

Each type has its own advantages, and experienced insurance agents can help guide their clients in choosing the right type of policy for their unique business needs.

What is the difference between Public Liability and Products Liability insurance cover? … The difference is that Public Liability relates to injury or property damage whilst you’re on the job, and Products Liability relates to injury or damage caused by any products you distribute, supply or manufacture.

Generally speaking, public liability protects against claims made against your business by customers or the public, it does not cover employees injured on the job – this is covered by mandatory workers compensation insurance.

Public Liability Insurance

What is business insurance? … Public liability insurance can cover compensation claims if you’re sued by a member of the public for injury or damage, while professional indemnity insurance can cover compensation claims if you’re sued by a client for a mistake that you make in your work.

Liability means you could be “liable” or responsible for actions (or non-actions) on your part that led to damages occurring. Property insurance covers your stuff, not someone or some entity trying to sue you for something you did.

Public Liability Insurance, or PLI, 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 can include visitors to an office building, delivery personnel, and customers of a retail establishment. PLI is considered the “starting point” for most businesses, especially those that are retail- or public access-oriented and can be seen as a form of minimum business insurance coverage.

Examples of public liability insurance claims. A plumber fits a new mains shower system in a customer’s home. … The plumber’s public liability insurance covers the cost of the claim, including legal expenses and the compensation which is finally awarded.

General Liability Insurance

What Are the Main Kinds of General Liability Claims? General liability insurance helps protect businesses from being sued by third parties. This includes coverage for bodily injury, property damage, and personal or advertising injury claims.

General Liability Insurance, or GLI, typically covers a very broad range of potential legal issues for business owners. The language of the policy includes public liability coverage or the coverage associated with a standalone PLI policy.

This insurance is designed to protect against liabilities arising from defective products, workplace accidents, negligence, and injuries incurred by both employees and members of the public such as visitors to a business or its customers.

A GLI policy may also cover payments for medical and legal expenses. GLI policies are often required by municipalities and states as a condition of granting a business operating license.

Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance, among other policies. The three types of property insurance coverage include replacement cost, actual cash value, and extended replacement costs.


As with any contrast between two different types of insurance policies, there are strengths and weaknesses associated with PLI and GLI. PLI policies represent a minimum amount of liability coverage, covering the liabilities against public claims of injury, negligence, and accidents.

As such, these policies tend to be relatively economical. However, these policies are limited in that they cover liabilities only for members of the public; PLI does not protect against claims arising from the business’s employees, investors, or vendors.

Any expenses exceeding the coverage in the policy are the responsibility of the business owner.

GLI, in contrast, is more comprehensive in that such a policy protects against losses incurred by the public as well as vendors, employees, and even the business owner(s).

These policies tend to be substantially more expensive than PLI policies, often putting them out of reach of small- and medium-sized business operations.

The added expense means a superior level of coverage, however, covering most of the foreseeable losses and protecting the business’s assets in the case of a catastrophic event.

Many business owners may not understand the differences between the two, or even know that there is a difference.

They will want to understand which type of policy best fits the needs of their operation and its potential risks, and as their insurance agent, they will look to you to have the answers.

5 Things You Shouldn’t Say to an Insurance Adjuster

  1. Admitting Fault. Never admit fault or use apologetic language during conversations with claims adjusters. …
  2. Speculating About What Happened. …
  3. Giving Information About Your Injuries. …
  4. Making a Recorded Statement. …
  5. Accepting the First Settlement Offer.

Not only do adjusters lie about facts, circumstances, and paperwork, they may also lie about the law. This does not just apply to the other person’s insurance company. Many clients’ own insurance companies have lied about what coverage is available just to keep injured victims from filing a claim.

Adjusters inspect property damage or personal injury claims to determine how much the insurance company should pay for the loss. They might inspect a home, a business, or an automobile. Adjusters interview the claimant and witnesses, inspect the property, and do additional research, such as look at police reports.

Public Liability Insurance
Public Liability Insurance

Cheap Public Liability Insurance: Searching Made Easy

Many business establishments are in search of cheap public liability insurance. Others are used to checking through different insurance company websites to check for low-cost insurances.

Some would even spend time calling and talking to various insurance customer service representatives and in the end, are thought to check further on the web for instant information.

This can waste a lot of time, especially for a busy business owner or manager. Some would simply ask around and compare cost but each business has unique demands and different budgets established for insurance purposes.

However, the best way to search for cheap public liability insurance is to look for insurance quote engines. Insurance quote engines will require some information for the system to know your needs.

After the details are provided, it will pull up various plans from different carriers for you to choose from. The premium information and the various services provided will help you compare different public insurance liability offers.

The system can generate information in just a matter of seconds. In a few clicks, you have all the information you need to pick from a wide range of public liability insurance offers that are within your budget and meets the demands of your business.

However, once you have your eyes on a few insurance offers, shortlist your options. And based on your company’s demands, you need to check on the limitations in each and every public liability insurance offer.

See how each insurance carrier can provide competitive insurance offer with the competitive services they provide. Most insurance companies offer very low prices for their service because they offer overflow with limitations instead of services.

With very little to get out of the insurance, there might be no advantage of having cheap public liability insurance after all. However, if you limit your option to reputable insurance carriers, you might have a better chance of receiving the best level of service for a low price.

The insurance that covers many liabilities to the public, their lives, and properties are the best choices especially if it is for a low cost.

Finally, double-check on the premiums offered. While some premiums might showcase low amounts the services you needed might require an additional fee.

The premium price can just be bait so it is best to be extra cautious in settling for cheap public liability insurance. If all the other insurances offer the same premium and the same additional services for a fee then choose the one that offers the service that suits your business for a low additional cost.

At the end of the day, it is supposed to be a financial solution that takes care of untoward incidents on the business premises. And if the wrong one is chosen, there could be more unnecessary hassles experienced.

Prevention is the best cure and choosing the best public liability insurance does not rush. Take time to check the credibility of the insurer. In addition, take a close look at the premium price if it already includes the service that meets all of your needs.


Public liability insurance is a policy that provides insurance to the business against harm to the customers or a third party while on the business estate. The loss may be either monetary or physical injury.

This is a very important insurance policy that protects the interests of all those businesses whose gates are open to the general public.

The premiums of the public liability insurance are low and affordable for the business. When compared to the loss that the company or the business will have to bear in cases of physical or monetary injury to the customer, the premiums are very low.

Public liability insurance is a protective cover for the business. In businesses where there is regular public movement in the business premises, there is a chance of danger, especially when there is machinery involved.

The risk of injury cannot be eliminated in shopping centers and stores, where the customer may stumble over things or products in the display that may fall over a customer.

In such cases, having public insurance will save a lot of trouble for the businessman. Damage to customer property and theft of customer property is also covered under this insurance.

Business premises do not mean only closed enclosures. Businesses involved in outdoor business and field works can take a public liability policy to cover the dangers on the field.

For example, a person walking by a construction site can hurt himself by stumbling over construction material. Other examples of field jobs where a public insurance policy comes in handy are outdoor photo or film shoots, surveys and road works.

In fact, public liability policy is more necessary while on the field than while indoors.

The insurance policy covers the expenses incurred in legal claims and proceedings if a customer sues a policyholder. Another detail that the insurance covers is the loss of property or physical injury to the business personnel while on the premises of the clients.

For example, the company personnel who go to the client premises to deliver goods may meet with accidents while on the client premises.

This policy is useful for all businesses like wholesalers and retailers. Although a lot of businesses ignore public liability policy, it is a very handy thing to have in times of need.

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What are the loopholes in the policy?

A public liability policy covers claims from the customers or the third party only. It does not cover claims from the employees of the business. The businessman will have to take an employee liability policy to cover such claims.

Since you are the owner of the business, you are responsible for any damage that may happen to one of your employees. Employee liability insurance is a compulsory requirement for a business.

Public Liability Insurance

Intentional damage to the property of a customer or to the customer himself is not covered under this policy.

The policy amount can vary depending on the business. While in some businesses, the risk of public injury is greater, in other businesses, the risk is almost nil.

So, the policy cover should take into consideration the risk factor involved, the size of the customer base, and also the type of business. The public liability policy also covers the death of a customer or a third party on the premises.

In cases of natural death, no insurance cover is required. Although public liability insurance is optional insurance and depends on the employer or the businessman, it is always in the best interests of the business to have public liability insurance so get through minor hiccups without much monetary loss.

Public Liability Insurance

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