Should I Get Public Liability or Employers Liability Insurance?

Should I Get Public Liability or Employers Liability Insurance?

Should I Get Public Liability or Employers Liability Insurance?

Here’s a quick look at these coverage types:

  • Public liability insurance helps cover damages to someone outside the company.   
  • It covers bodily injury and property loss resulting from your operations. 
  • Employers liability insurance helps cover the cost of injuries to employees. 
  • It covers your company for lawsuits filed by employees or their survivors. 


Q: I’m researching liability coverage for my business and came across two new terms: public liability insurance and employers liability insurance. What do these mean, and do I need them? 


Farmers Insurance® agent Richard Khasim of Escondido, California, discusses the differences in these coverages.

A: First, let’s look at public liability insurance. This is another name for what we call general liability insurance. It helps cover the cost of injury to others — such as customers and visitors — and damage to their property. Let’s say you own a retail store  and a customer slips and falls on a damp patch of flooring. Your liability coverage can help cover the cost of injuries resulting from the fall. This coverage is especially important for businesses that are open to the public or have frequent visitors. 

Employers liability coverage may be required by law if you have employees. In most states, it’s automatically included in your workers’ compensation policy, which covers the cost of injuries to your employees, including medical bills and time off work. Employers liability insurance provides an extra layer of protection in case an injured employee decides to sue your company for additional damages. It helps cover the cost of your legal defense and any monetary judgment against your company. 

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