A public liability insurance policy typically covers the following risks:
• indemnity for the insured for all amounts for which the insured becomes liable regarding, or arising out of:
o personal injury
o property damage
o advertising liability;
• costs and expenses incurred by the insured in connection with or incidental to:
o providing medical aid to any person
o protecting property
o mitigating, containing or suppressing actual or possible loss;
• all costs associated or connected with or incidental to the investigation, settlement or negotiation of a claim;
• all costs recoverable from the insured by a claimant; and
• all costs and expenses connected with or incidental to the investigation, defence, negotiation or settlement of the insured by any official investigation or examination.
A public liability policy typically excludes cover for the following risks:
• property damage or bodily injury caused by a motor vehicle where the motor vehicle is insured (bodily injury in this case is covered by compulsory motor vehicle third-party (CTP) insurance);
• injury to the insured's employees, which is to be covered by workers compensation insurance;
• loss arising from the professional services provided by the insured;
• risks associated with asbestos;
• product liability; however, product liability and public liability insurance are often sold together; and
• liability arising out of aircraft, watercraft or vessels (if they exceed agreed specifications).