Public liability insurance covers the liability risks faced by an industrial, commercial or agricultural business that may arise from its activities. The cover extends not only to the statutory → Third-party liability not only the business owner, but also the → Third-party liability of employees whilst carrying out their duties. The insurance protects the company against claims for damages from third parties. Firstly, it assesses whether a liability for damages exists at all, and if so, to what extent. If the claim is valid, it generally covers the costs of personal injury, property damage and any resulting financial losses. If the claim is invalid, it defends against it – in court if necessary.