What is Employer's Public Liability Insurance?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 23 January 2020
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Employer’s public liability insurance is a form of insurance coverage that protects the company in the event that a client or a member of the general public is harmed due to actions taken by the business or a representative of that business. The coverage typically also includes damage to public or private property that is sustained as a direct result of the activities of the insured party while engaged in a business transaction with the injured party. In many nations, businesses of all sizes carry at least some form of employer’s public liability insurance if the operation of the business requires regular interaction with customers or the public in general.

As with all types of liability coverage, employer’s public liability insurance provides funds for redress in the event that someone is injured as a result of conducting business with the company. Insurance coverage of this type is not limited solely to companies that manufacture goods or services and sell them directly to the public. Retailers often carry liability insurance that protects them in the event of a customer sustaining some type of injury while shopping, possibly by slipping on a recently mopped floor or by the collapse of a display. In some countries, selling goods that are defective and lead to an injury for the buyer may also be covered in the terms of the policy.


A wide range of employers benefit from carrying employer’s public liability insurance. Even small businesses like plumbers, electricians, and painters can benefit from securing and maintaining this type of coverage. Larger concerns such as construction firms, oil companies, and manufacturers of various goods and services are also likely to carry the insurance. In many nations, governmental regulations set standards for the coverage, requiring that certain types of businesses maintain at least a minimum amount of liability insurance in order to continue operation in that country.

While the terms will differ somewhat from one nation to another, most forms of employer’s public liability insurance will cover damages awarded by a court to a plaintiff who sustained some type of injury due to the actions of the company. It is not unusual for the insurance providers to attempt to negotiate a settlement with the injured party in advance, often avoiding the time and expense involved in taking the claim to court. Settlement offers should be evaluated with the help of an attorney or other legal counsel, especially if the injury sustained has the potential to cause additional problems for the injured party later in life.



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