Public Liability vs. General Liability Insurance: What Every Business Should Know
If you’re a business owner, understanding the difference between public liability insurance and general liability insurance is crucial. While these terms are sometimes used interchangeably, they have distinct scopes and coverages.
Public Liability Insurance
What it covers:
Protects against third-party claims—such as personal injury or property damage—that occur on your business premises or during your operations with the public.
Typical scenarios include:
A customer slipping and falling in your shop
A delivery driver getting injured on your property
Damage caused by your equipment to someone else’s property while on your premises
Source: Insureon & Hartford
General Liability Insurance
General liability insurance is broader and more comprehensive. It includes public liability coverage, but also protects against additional risks:
Third-party injuries anywhere (on or off your premises)
Property damage resulting from your operations or products
Personal and advertising injuries (e.g. libel, slander, copyright infringement)
Product liability if a product you sell causes injury or damage
Source: Chron, Wikipedia
Comparison Table
| Feature | Public Liability | General Liability |
|---|---|---|
| On-premises third-party claims | ✅ Covered | ✅ Covered (plus more) |
| Off-premises claims | ❌ Not covered | ✅ Covered |
| Product liability | ❌ Typically not included | ✅ Included |
| Personal & advertising injury | ❌ Not included | ✅ Included |
| Cost | Lower premiums | Higher premiums due to broader coverage |
Who Needs What?
Public Liability Only: Ideal for small businesses that only interact with customers on their premises (e.g., salons, retail shops).
General Liability: Recommended for businesses with wider operations—working offsite, selling products, or advertising publicly.
Source: Small Business Chronicle, Hartford, Simply Business
Why Choose General Liability
Even if you currently only serve customers at your own location, general liability may still be wise—it covers risks you might not foresee, like product-related claims or advertising disputes. For many businesses, paying a bit more for comprehensive protection is a smart safeguard.
What to Do Next
Assess your business activities—where do you operate and what interactions do you have?
Choose the right coverage—public liability may suffice for limited-visit scenarios, while general liability offers greater protection.
Compare quotes from multiple insurers—even a small cost difference could mean significant savings.
Need Help Choosing?
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