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Public liability insurance covers the claims made against the business by the public or any third party, who suffers a loss or injury at the business premises due to the business owner's negligence. Many business owners think that their premises are totally secured and don't consider public liability insurance. But, in reality, no business can operate without a risk. Even small things like a slippery floor, a cable across the floor, etc. can cause significant injury or damage to the other person.