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What Is Public Liability?
Public liability, known in Spain as responsabilidad civil de explotación, is the obligation to repair damage that the person responsible for a business activity must face for damage they may cause to third parties.
This refers to damage caused by negligence or fault, by action or omission, and which can be quantified for claim and compensation purposes. We are referring to the financial translation of material and bodily damage and, more generally, losses.
Public Liability Cover in Insurance Policies
Insurers offer guarantees or covers to provide protection against these risks, which may arise from work activities included in contracts or from activities outside them.
Although many covers are common to this type of product, the guarantees included in liability insurance policies may vary from one product to another.
Here are some examples where this type of public liability cover may apply.
Situations Where Public Liability May Apply
Examples include:
- Work carried out by the company on its own premises.
- Work commissioned by third parties and carried out outside the company’s premises.
- The ownership, use and maintenance of machinery and other company tools.
- All phases from loading and transport to unloading and storage.
- Surveillance and security tasks.
- Certain company activities, such as placing external advertising, relationships with people outside the company who visit its premises, and employees attending conferences or business trips.
In addition to these situations, policies taken out by companies wishing to insure against the risks of their activity may include others, such as risks deriving from ownership of company buildings. This would include real estate liability cover.
Differences Between Public Liability and Professional Liability
Finally, it is worth distinguishing between these two concepts, because depending on them it may also be appropriate to take out different types of insurance.
Both types of liability arise from actions or omissions that involuntarily cause damage to third parties during work activities.
What distinguishes professional liability from public liability is that the former does not only apply to third parties, but also to the professional work being carried out, through errors, negligence or omissions.
In short, it is advisable to insure against the risks involved in public liability. If you need more information about public liability, contact us.[/vc_column_text][/vc_column][/vc_row]