Public liability insurance is specifically designed to cover a business against any action taken by a third party that has been hurt as a direct result of your product or service you’ve provided. The protection is in place to ensure that your customers or clients do not suffer injury or damage when engaging with you.
There are two main types of public liability insurance, the first of which is general liability. This will cover you for injury and damage sustained while operating your business – but does not cover anything related to your private finances, such as the performance of any financial services you may offer. The second type of insurance is professional liability cover, which will pay out to indemnify and compensate professional services you use while running your business, for any legal costs incurred as a direct result of any injury or damage sustained by your customer or client. Whilst professional cover does not normally come into its own as part of your business, it can help to protect you in the event of any injury caused as a result of the work you do.
In essence, the protection offered by this insurance will protect you against claims from any person who becomes injured while using your service or passing by your business operations. While it’s unlikely that a large number of people will ever become injured as a direct result of your business operations, what is often missed is that there is always a possibility that someone could sustain an injury whilst utilising your service. Wet floors are often the cause of injuries, as they create a slippery surface which can be easily slippery for inexperienced or busy people, particularly if there are puddles of water on the floor. As well as injuries, slips and falls can also cause major damage to property, particularly in the event of a major fire. In this case, professional liability insurance would pay out to cover any legal costs, as well as any out-of-pocket expenses incurred by your business during this time.