Difference between public and general liability insurance?

When protecting your business from legal claims, understanding the difference between public liability and general liability insurance is crucial. While both policies offer financial protection, they cover different risks. Choosing the right coverage ensures your business stays safeguarded against potential lawsuits.

What Is Public Liability Insurance?

Public liability insurance (PLI) protects businesses from claims related to third-party injuries or property damage that occur on your premises or due to your business activities. It is commonly purchased by small businesses, event organizers, and contractors who frequently interact with the public.

What Does Public Liability Insurance Cover?

• Injuries to customers or visitors at your business location

• Property damage caused by your business operations

• Legal fees and compensation claims due to third-party incidents

Example: If a customer slips and falls inside your store, public liability insurance can cover their medical expenses and legal claims.

What Is General Liability Insurance?

General liability insurance (GLI) offers broader coverage compared to public liability insurance. It protects businesses from a wider range of risks, including product liability and advertising-related claims.

What Does General Liability Insurance Cover?

• Third-party bodily injuries (similar to PLI)

• Property damage to third parties

• Product liability (injuries caused by your products)

• Advertising injuries (libel, slander, copyright infringement)

• Legal costs and settlements

Example: If your business sells a defective product that causes injury, general liability insurance will cover legal expenses and potential settlements.

Key Differences Between Public Liability and General Liability Insurance

Which Insurance Should You Choose?

• If you primarily interact with customers or clients in person, public liability insurance may be enough.

• If you sell products, advertise, or want broader protection, general liability insurance is the better option.

• Many businesses opt for general liability insurance because it covers more risks and offers comprehensive protection.

How Much Does Liability Insurance Cost?

The cost of liability insurance depends on factors such as business type, industry risks, and coverage limits.

• Public liability insurance: Starts at $30–$50/month for small businesses.

• General liability insurance: Typically costs $50–$100/month, depending on coverage limits.

Get the Right Coverage Today

At Toby Hansen Agency, we compare nearly 100 carriers to find the best liability insurance for your business. Whether you need public liability, general liability, or both, we help you secure affordable and comprehensive coverage.

Get a free quote today and protect your business from unexpected claims!

FAQ: Public vs. General Liability Insurance

1. Is public liability insurance required by law?
Public liability insurance is not legally required in most states but may be necessary for businesses that interact with the public frequently.

2. Does general liability insurance cover professional mistakes?
No, general liability insurance does not cover professional errors. You need professional liability insurance for that.

3. Can I bundle public and general liability insurance?
Yes, many insurers offer bundled policies to provide broader coverage at a lower cost.

4. How do I know how much coverage I need?
Consider your industry, client interactions, and potential risks. Our agents can help you determine the best coverage amount.

5. How do I get a quote for liability insurance?
Contact Toby Hansen Agency today for a free, no-obligation quote and let us find the best policy for your business.

Protect your business from costly claims—get insured today!