As a business owner you are accountable to third parties that come into contact with your business (customers, employees, suppliers, etc.). If damage or an accident occurs while you’re providing a service, a third party can sue your business, which can result in costly legal fees as well as the obligation to pay for the damage or injury you may have caused.
These costs are often devastating for businesses, which is why Public Liability Insurance exists to help protect you in the event of an incident.
This cover can also be extended to include Products Liability, this is particularly important when you manufacture, or re-label products.
This is usually required by third parties that you prove via a certificate of currency that you have cover in place, this can be a landlord, bank holding a mortgage, or many other third parties you try and do business with.
Usually you would be looking to have $20,000,000 in cover.