Public Liability insurance is designed to cover businesses from the threat that they will be sued from a member of the public. The basic concept of public liability is, it will cover your business in the event that it causes injury or death to a third party, it will also cover you in the event that you damage a third parties property. Public liability is an essential cover that all businesses need, cover is relatively cheap and will cover you in the event that you are pursued by a third party.

Here are a couple of examples of how a claim could arise:

• A plumber is fitting a sink and they don't tighten a bolt properly and that causes a flood damaging the clients' property. The plumber has acted negligently by not fastening the bolt properly.
• A member of the public goes into a shop and slips over on a piece of wet floor and there were no signs to say that the floor was wet. This person would have no problem in suing the shop-keeper.

Public liability insurance applies to all businesses as it is the most basic essential cover, although it will not stop your company being sued it will provide the financial backing in the event that there is a claim awarded against you. If you do not have public liability insurance and you get pursued for compensation you will be liable to pay the full amount of the claim, if you are not able to pay the compensation you will lose your business, home and any other assets that you have.

Last year over 5 billion was paid out alone in public liability insurance claims. A lack of public liability insurance puts thousands of businesses out of business every year.