ÑÇÖÞÉ«ÇéÍø

Public liability insurance

Public liability insurance is a form of liability insurance that indemnifies and protects a policyholder’s liability in respect of a claim for injury to, or damage to the property of, a third party.

A public liability insurance policy will typically cover the cost of any legal fees (both the third party’s and defence costs), the cost of compensation claims, and the cost of repairing or replacing damaged property.

Public liability insurance is often sold in conjunction with employer’s liability insurance, which provides cover in respect of a claim for injury suffered by employees, as opposed to third parties. Unlike employer’s liability insurance, there is no legal requirement to carry public liability insurance but it is good business practice, particularly for businesses which come into regular contact with members of the public, and it may also be required by local government or council contracts, some trading associations, and/or other organisations in connection with new and existing business opportunities.

For more information about employer’s liability insurance, see Practice Note: Employers’ Liability Insurance—essentials.

An insured’s right to recover under a liability