Public/Product Liability Insurance

Public liability Insurance cover is essential for businesses that regularly deal with clients and members of the public. It provides cover against legal liabilities arising from accidental damage to the property of members of the general public caused by the insured or employees in the course business operation.

It’s also vital to keep your public liability policy up-to-date to reflect any changing circumstances in your business. As your business expands you’re likely to find your risks grow too.

Product Liability is often treated as an extension of public liability. It covers the insured’s legal liability for bodily injury, or loss, or damage to property caused by the Insured’s products to the third party. The policy is designed to cover against unforeseen circumstances arising from defects in the commodities, or goods sold, supplied, serviced or processed by or on behalf of the insured or defects in the containers of the goods or wrong labeling thereof.

Who needs it

If you manufacture or supply goods, there is always the possibility that your product could cause damage to a third party; a small defect could open you up to massive claims, so this cover is vitally important for product manufacturers.

Tips

Look for a policy that guards you against safety claims, manufacturing quality, spoilage and indemnity costs (medical bills and so on). And remember you won’t be able to make a claim if you make an inferior product or supply bad services.