Public Liability Insurance covers you for actual or alleged negligence caused by you or your employees which results in bodily injury or property damage to a third party. Even if you are found to be not guilty in a court proceeding, your policy will still respond to cover your legal defence costs.
A dental hygienist has a consultation with an elderly patient; they prepare the treatment chair and ask their patient to sit down. When the patient is seated, the hygienist begins to recline and raise the treatment chair. The motor in the chair fails and the chair drops suddenly, causing the patient to fall out of the chair and fracture their hip. Action is taken by the patient against the physiotherapist and it is found through investigation that the physiotherapist did not arrange adequate maintenance n the chair which led to the motor failure. They are found liable for the damages and their Public Liability policy responds to pay.