Let’s examine what is commonly called public liability insurance.

A simple definition is that this broad-spanning insurance covers all exposures for property and bodily damage – except those related to ownership of airplanes and autos – for a company. Public liability insurance covers any costs of compensation deemed worthy for a party injured as a direct result of your business. There are also further-simplified definitions, including a policy that covers death or injury to anyone on a business’s property; a policy that covers financial loss caused by an injury to a non-employee on a business’s property thanks to a business’s negligence; or liability for damage or injury to property, health, or life as a result of work. Also understand that this sort of insurance covers any damage you may cause to a customer’s property.

What sort of company should look into public liability insurance? It is more likely that a company providing a public service will need the insurance. Companies like roofers, builders, construction workers, plumbers, and independent electricians should definitely look into public liability insurance.

In most countries, public liability insurance isn’t required by law, but a company without public liability insurance could pay dearly if any legal actions stem from the company’s action. Public liability insurance is a necessity in order to cover any damages stemming from legal claims against a business. Any independent contractor or small business owner has to understand that there are risks inherent with any sort of business, meaning public liability is an absolute necessity even if it isn’t a legal requirement.

Some companies will tout the cheapest public liability insurance premiums, but you have to make sure you carefully inspect any policy to make sure that it makes sense for your business. Policies will have different advantages for different types of outfits, so make sure you perform your due diligence and decide what your company needs.