This pays out in the event of a mistake by any of your business activities that causes injury or damage to a customer or member of the public.
For example, you should be covered if a member of the public trips and gets injured because of a spill on a shop floor that isn’t marked with a warning sign.
You’re more likely to need this if people visit your premises, for example if you run a shop.
For a few businesses, including horse riding stables, it’s a legal requirement.
Customers might want to see proof of adequate insurance before they’ll do business with you.