What is Public Liability Insurance?

Nature of public liability insurance

Public Liability insurance covers the assured’s liability to the public at large. Typically, it covers sums which the assured: (i) becomes legally liable to pay (ii) to any third party other than an employee (iii) as damages or compensation for (iv) death and personal injury, property damage or interference with certain property rights (v) happening in a specified context.

Public Liability insurance is not statutorily compulsory but is plainly a sensible precaution if the assured’s activities are likely to give rise to claims or if its ability to satisfy claims is limited. Accordingly, many companies take out a combined business insurance policy which includes Public Liability, Employers’ Liability and Products Liability insurance. Likewise most domestic household policies routinely include an element of Public Liability insurance.