With the constant economic development, enlargement of the city size, the fire situation of our country is becoming more severe, malignant fire accidents which kill and wound groups of people happen repeatedly and have caused serious harm to the people's safety of life, property and social stability. The relief way most important to the victims, namely liability insurance system , is not perfect. This article demonstrates how to establish and perfect the system of public liability insurance of fires and its necessity, feasibility, social significance, measures, and risk control so as to illustrate some practical problems.