What is the primary purpose of public liability insurance?

Public liability insurance is specifically designed to protect businesses and individuals against claims for damages or injuries inflicted on third parties. This type of insurance provides coverage if a third party suffers bodily injury or property damage due to the insured's business activities, either on the premises or away from them. This is particularly relevant in industries where there is a higher risk of public interaction or potential for accidents that could affect customers, clients, or the general public.

For instance, if a customer trips and injures themselves in a store, public liability insurance would cover the costs associated with that claim, including potential compensation and legal fees. Thus, the primary purpose of this insurance is to safeguard the insured from financial losses stemming from such third-party claims.

Other options, like covering employee injury claims, insuring business property, or covering legal costs in lawsuits, represent different types of coverage or concerns that are not the primary focus of public liability insurance. Each of these addresses specific risks associated with a business but does not pertain to the liability towards the general public, which is the cornerstone of public liability insurance.