Public liability insurance protects your business from compensation claims if members of the public or customers are injured or their property is damaged as a result of your business activities. It can also cover your legal costs if you are sued over a claim. Source :https://www.tradesmansaver.co.uk/public-liability-insurance/
It is not a legal requirement for businesses to have public liability insurance, but it is a good idea for any business that interacts with the general public in any way. Some clients, such as councils and government organizations, may even ask to see proof of your policy before they work with you.
What does public liability insurance typically cover?
The key elements of a public liability policy are covered:
Bodily injury to third parties – covers damage caused to people when they are visiting your premises. For example, if a client slips and falls at your office or if someone is hurt when they are attending an event hosted by your business.
Product liability – cover for injuries caused by goods that you sell, such as if a piece of furniture you have sold is defective and causes an injury or damages someone’s property.
For trades like tradies, many policies also provide cover for contractors working on their behalf. For example, if a pipe bursts during an installation at a customer’s home and they make a claim against you, this type of cover can help pay for the repairs and any medical expenses.