What does "public liability insurance" cover?

Public liability insurance is specifically designed to cover liability for third-party injuries or property damage that may occur as a result of the insured's activities. This type of insurance provides protection against claims made by individuals or organizations for damages or injuries sustained because of the insured's actions or negligence.

For example, if a customer slips and falls on a wet floor in a business due to the owner’s failure to maintain a safe environment, public liability insurance would cover the claim the injured party makes for medical expenses and any other costs related to the injury. Similarly, if a business accidentally damages a third party's property, this insurance would handle the costs associated with those damages.

In contrast, the other options do not fully encompass the coverage provided by public liability insurance. Personal negligence related to property damage can be covered, but the key aspect is covering claims from third parties. Likewise, while legal fees might be associated with defending against claims, they do not constitute coverage themselves. Finally, damages to parked vehicles fall under separate auto insurance coverage, not public liability insurance.