Legal question, pedestrains(boo) vs. cyclists

Also, if the rider, or if the pedestrian gets hurt or a bike is damaged in a senario like this would it even be possible to handle it like an incident involving a motor vehichle? Insurance or anything?

Civil claims for damages could happen even if there was no perceived fault on your part sufficient to cause the police to act. Protect yourself with insurance. Some will have you believe that insurane is free if you join CTC or LCC or British Cycling. I look at things different to these people. My chosen insurer is CTC, I buy their membership mainly for the insurance and I also get a free magazine every so often, access to their legal beagles in case of an accident and I need to try and claim of some peds house insurance and a discount at most bike shops in the country. Plus I apparently also pay to support them in their lobbying for things that might help keep me alive a bit longer.