What Is Public Liability Insurance?
A public liability insurance policy is an older form of general liability that protects your business from third-party injuries and property damage. Third parties can be customers, vendors, contractors, and members of the public. In short, anyone outside your business. This coverage can help you manage the everyday risks that come with having people on your property or job site.
Most insurers, including Progressive Commercial, no longer offer a separate public liability policy. Instead, you can get this protection as part of your general liability insurance, which includes public liability and personal and advertising injuries like libel, slander, and product liability.
What does public liability insurance cover?
Whether you have a large or small business, public liability insurance can protect against unexpected accidents with other people. Public liability covers:
- Bodily injury: Pays medical costs and other expenses if someone gets injured because of your operations.
- Property damage: Covers the repair or replacement of another person's property if your business is responsible for damaging it.
- Legal expenses: Includes legal defense expenses and court fees, even if you're found liable for the damage.
What doesn't public liability insurance cover?
Public liability insurance doesn't cover injury to your employees or damage to your business site or equipment. Workers' compensation insurance will protect your business if an employee gets hurt or sick on the job, and commercial property insurance on a business owners policy (BOP) can cover damage to your business property.
BOP broadens business protection
A BOP includes liability protections, like public liability, and property coverage in one easy-to-manage package. Explore our BOP coverage guide to learn more about how this policy can help small to medium-sized businesses.
How much is public liability insurance?
Various factors determine your business's public liability insurance costs, including its:
- Type and profession
- Size
- Location
- Number of employees
- Claims history
- Coverage limits
You'll get public liability insurance through a Progressive Commercial general liability policy. Our median general liability cost is $60 per month. However, your rate may vary based on your business. Start a quote online today for a customized price.
Public liability insurance vs. general liability insurance
Public liability and general liability often get used the same way, but they have important differences. Public liability coverage focuses on third-party injury or property damage. General liability insurance includes all that and more, such as claims related to:
- Copyright infringement
- Injury caused by defective products
- Reputational harm, such as slander and libel
- Completed work or services
To cover public liability and other risks, get protection with general liability insurance.
Do I need public liability insurance for a home business?
Public liability insurance isn't usually required for home businesses, but it's worth considering if you interact with customers. Whether you meet clients at your house or elsewhere, this coverage can protect you if someone gets hurt or their property is damaged because of your work.
Home-based businesses come in many forms. Some welcome clients into their space. Others, like independent contractors, do most of their work off-site but handle scheduling and billing from home. In both cases, public liability insurance could help cover accidents related to your business activities.
See more about what coverages to consider for home business insurance.
What professions and industries should have public liability?
Any business that interacts with third parties, such as customers, contractors, and vendors, needs liability coverage. The following are just a few professions that should have this coverage:
Why is public liability insurance important?
Public liability coverage is essential because it protects your business from the legal costs associated with third-party injuries and property damage. Some customers, particularly government clients, even require a certificate of insurance (COI) before working with your business.
