In the case of public employees, “liability insurance” may refer to coverage for employees who are sued for possibly negligent behavior in the workplace. The most frequently accessed liability insurance is typically provided directly by employers. Some school districts in Pennsylvania, for example, purchase general liability insurance to protect teachers for claims made against them for actions taken during the workday.

In New York, many public employees are indemnified by their employer provided the actions of the employee that led to a claim took place while the employee was acting within the scope of his public employment or duties. Employees should check with their employers to see what, if any, insurance or indemnification their employer provides. Unions typically provide additional insurance for their members, but this kind of liability insurance can also be purchased directly by employees from other vendors, often at a much lower cost than what the union charges in dues.