Property Insurance vs Liability Cover: Who Pays When Your Business Harms Someone?

Property insurance, like a fire policy, pays a business for damage to its own things. It does not pay someone else for a loss the business causes. In this example, a customer slips on a wet floor in a shop and breaks her wrist, and the shop's property insurance will not pay for her treatment. Public liability insurance can pay her compensation and legal expenses if the shop is legally responsible, up to the policy limit. Product liability, professional indemnity and employees' compensation cover other kinds of harm. Liability cover usually has to be taken separately, and coverage and terms depend on the policy. Ask which of these covers your business needs.