What is public liability insurance and who needs it?

What is public liability insurance and who needs it?

With the help of various online portals, which also provide you with free tariff calculators, you can easily find the best one for you Find the right business liability insurance.

What benefits does the business liability insurance include?

This type of insurance releases the policyholder from justified legal claims by third parties for damages. In addition, it is examined to what extent the claims are actually justified. The defense against unfounded claims is an important point here. In addition, in the case of business liability insurance, benefits are regularly paid not to the policyholder, but to the injured party themselves. A benefit can only be paid to the policyholder if the claim for damages has expired as a result of the benefit or offsetting.

In addition to the sponsoring company or sole proprietorship, people who run a branch or business are also insured. Likewise, all employees who work or will work for the employer are covered by the insurance. Claims by the policyholder from co-insured persons or against co-insured persons are not the subject of business administration insurance. If an accident at work occurs in the course of a commuting accident, the employee’s damage is compensated by the statutory accident insurance.

What role does product liability insurance play?

If a person or a company produces something, and not only supplies products to end users, there is a risk that the products can cause not only direct damage, but also financial damage. These are often not covered by “conventional business liability insurance”. These are, for example, pointless manufacturing or processing costs as well as costs for exchanges or even recalls, which are caused by errors in certain factors in the end products.
For commercial intermediate producers, only product liability insurance offers reliable coverage of the damage incurred or the possible risks.

What are the advantages of business liability insurance?

The advantages of professional liability insurance include the fact that benefits can be provided in the insurance year up to three times the sum insured. The extended product liability insurance provides increased insurance protection. In addition, an extension to environmental damage is possible and the additional coverage is tailored precisely to the needs of the policyholder.

What is the difference between public liability insurance and professional liability insurance?

Professional liability insurance is liability insurance that covers professional risks. However, it is not universally defined which risks actually have to be covered with this type of insurance. Since it can also include business liability insurance, it is extremely difficult to clearly separate the two types of insurance.

The professional liability insurance itself primarily covers property damage and personal injury caused by self-employed or freelance work. They must have occurred in the business premises or in the “operation” of a shop. If the place of business is an office, the term office liability insurance is used instead of the term business liability insurance. This includes, for example, damage to the parquet floor as property damage, or injuries to a party as personal injury. As a rule, professional liability insurance does not cover purely financial losses.


Public liability insurance is not only an advantage for certain groups of people, it is even mandatory. If claims for damages are made to freelancers or a company by a third party, the business liability insurance comes into effect, checks the existing claims and covers them if necessary, provided that the damage is justified.

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