Most businesses would require protection against any claims for accidental damage caused to property or an individual whilst as a result of your business activities or simply if the accident occurred at your premises.
We have all heard of slip and trip negligence cases and the "no win no fee" lawyers keen to help victims. The public liability insurance protects your business exactly against such claims, which can be very expensive because it involves legal fees, compensation payments to the victims, their physiotherapy if any, NHS fees and any damages arising from the accident.
Businesses that are mostly at risk from public liability claims are those who deal with suppliers or clients visiting the business premises and although having a public liability is not required by law, there are certain types of businesses which will need such insurance in order to trade.