What does public liability insurance protect a business against?

Public liability insurance is designed to protect a business from claims made by third parties for damages or injuries that occur as a result of the business's operations. This type of insurance covers various incidents that might harm someone outside of the business, including injuries to individuals or damage to their property caused by the business's activities. Such coverage is crucial for mitigating financial risks associated with unforeseen accidents that could lead to legal action and compensation payouts.

In contrast, coverage for injuries to employees typically falls under workers' compensation insurance, which addresses workplace injuries and illnesses. Damages to business property are covered by property insurance, which protects the business's own assets rather than liabilities to others. Lastly, workplace discrimination claims are addressed through employment practices liability insurance, which specifically covers legal costs and settlements associated with such claims. Thus, public liability insurance is specifically focused on protecting against external claims, making the option concerning damages or injuries to another person or property the correct answer.