Does your business need public liability insurance to cover any future lawsuits and the settlement or compensation costs that come with them? While this coverage is not required unlike employers’ liability insurance, which includes workers’ compensation, it is safe to say every business needs public liability protection to some extent.

How much public liability coverage you need depends on what kind of business you are in and your own unique risks. For example, a landscaper or brewery could have greater risks than a walk-in retail store or professional business (realtor, insurance agency, or attorney for example).

It may be helpful to get a clearer understanding of your risks as a business to understand your needs. This is why a general liability insurance audit through your insurance company is a great idea.


Why public liability insurance?

If someone is injured on your business premises, such as a fall at a winery after having a bit too much to drink, or as a direct result of your business activity elsewhere, such as a construction accident in a customer’s home, it falls under public liability.

The coverage types that typically fall under public liability can fall under any of the following terms. They may mean the same thing, depending on the language of your insurance company:

Again, public liability coverage is not legally required, but the odds are that you’ll need it if you deal directly with the public, rely on outside contractors or subcontractors for business, or even if you sell products or conduct other business online from home.

Any property damage or injury to someone on the premises of your business or remote work site will generally all fall under general liability costs.


Costs Covered by Public Liability Insurance

The costs that may be covered by public liability coverage include:

  • Treatment of third-party complainants due to injury
  • Medical costs resulting from the incident
  • Transportation costs for treatment
  • Compensation for lost works days for medical care/hospitalization
  • Your own legal costs which may be cumulative over weeks, months, even years

Think about what the costs might be if you are sued and don’t have public liability insurance. You’ll most likely have to pay a lawyer to represent your interests in or out of court until the case is resolved. If the claim against you is successful, add the cost of the settlement, possibly being ordered to pay the plaintiff’s legal fees as well. It could become very costly.

If you win the suit, unless you engage in a countersuit, you still have your legal expenses. Additionally, you may not be able to collect from the other party who may have limited financial resources, other than a court order to pay gradually over a protracted period.


Personal liability protection could assume that burden.


We know your business is your livelihood and here at Gannon Associates Insurance, we are committed to partnering with our clients to develop comprehensive protection plans to fit their unique needs. Give us a call today at 844-GANNONS or email us at to get the conversation started today!