What Is Public Liability Insurance And Who Needs It

by Tanya December 26, 2022

Public Liability Insurance is designed to protect you and your business should a customer, supplier, or member of the public bring a claim against you for injuries/death or property damage caused by your commercial activities.

If you work with clients or customers in public spaces, visit spaces owned or controlled by others, have visitors to your premises, or manufacture products; PL Insurance is your best defense against potentially costly personal injury or property damage claims.

What does Public Liability Insurance cover?

For companies of all sizes, public liability insurance is a crucial defense against the potentially expensive fallout from an accident or event.

We’ll break down common things that PL insurance policy cover:

✔️ Property Damage

✔️ Personal Injury

✔️ Legal Costs

✔️ Tool/Equipment Theft

✔️ Professional Advice

✔️ Faulty Workmanship

✔️ Rectification Costs

✔️ Registered Vehicles

✔️ In covers costs for fixing or replacing property

Companies offer different types of insurances including Public Liability Insurance, Product liability insurance, Employers’ liability insurance, and more.

What is not covered by Public Liability Insurance?

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.

Every policy is different but generally Public Liability Insurance does not cover:

✔️ Damage to employees’ property or personal injury – if damage occurs to property belonging to your own business or employees, this won’t be covered under your public liability policy.

✔️ Intentional or unlawful activity – if it’s deemed that your actions are illegal or deliberate, you won’t be covered through your public liability insurance.

✔️ Taxes or punitive damages – damages awarded where a judge believes you acted so badly that extra damages are awarded. You may also be required to pay for additional taxes. These costs will not be covered by your public liability insurance.

✔️ Asbestos – if you’re working with asbestos, your public liability insurance won’t cover damage or injury which results from dealing with asbestos.

✔️ Faulty workmanship

Without having the effective Pl insurance, your business is not covered against financial or reputational losses if by recalling your products for any reason. A special Product Recall Insurance would provide coverage for this.


When a third party (a person or their belongings) gets injured on your property, public liability insurance shields your company from going out of business. In addition, if you are at fault for the injuries, the insurance pays the attorneys’ fees and rewards the victim.

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