Public liability insurance protects against claims of personal injury or property damage that third parties (such as clients or the public) suffer as a result of a freelancer's business activities.
It's particularly important for those whose work involves physical interaction with clients or the public, or use of public or client spaces. Depending on your profession, many clients will insist you have PLI in place in order to work with them.
An event planner: An event planner organises a large gathering at a rented venue. During the event, a poorly secured banner falls and injures a guest. The injured guest sues the freelancer for personal injury. Public liability insurance would cover the legal fees and any compensation due to the injured party.
Photographer: During a photoshoot in a client's home, a freelance photographer accidentally knocks over a valuable sculpture. The sculpture is damaged beyond repair, and the homeowner sues for property damage. Public liability insurance would cover the damages owed to the homeowner as well as legal expenses.
Personal Trainer: A freelance personal trainer conducts a class in a public park. During the session, a participant trips over the trainer's equipment and breaks an ankle. The participant sues the trainer for injuries sustained. Public liability insurance would help pay for the trainer's legal defence and any resultant damages.
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