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Public liability insurance covers you when someone tries to sue you as a result of your work. Examples could be an electrician damaging someone’s appliances or burning down their house, or an carpenter who leaves a power cord across the hallway that someone trips over, or a landscaper who digs a ditch that someone falls into. There are a million different things that can go wrong on the job, some of them are fairly harmless, but others can be huge and finish up in court with multi-million dollar settlements.