What is Public and Products Liability Insurance?

Public and products liability insurance is a crucial component of business protection. It safeguards your business from financial loss if you or your employees cause injury or damage to third parties or their property.

• Public Liability Insurance covers claims arising from bodily injury or property damage caused to members of the public. This could be due to accidents on your premises, the work you do, or the services you provide. An example of a public liability claim would be a member of the public who trips on an uneven floor at your business premises.
• Products Liability Insurance protects your business if a product you manufacture, sell, or distribute causes injury or damage to someone. Examples of products liability claims could be a restaurant serving food to a customer which has an undeclared allergen within, or material goods, such as an electric vehicle charger manufacturer which supplies a product causing an electric shock to the consumer.

Why Do You Need Public & Product Liability Insurance?

Accidents and product failures can happen unexpectedly. The costs associated with legal fees and compensation can be substantial. Public and products liability insurance provides a financial safety net, helping to protect your business from financial ruin.

Who Needs It?

While it’s essential for businesses that interact with the public, many businesses often overlook the need for this coverage. If your business involves:

• Physical premises
• Public interaction
• Product manufacturing, distribution, or sale

You will likely need this coverage.

Key Public & Products Liability Coverages

Public & Products liability insurance can either be purchased separately, or more often, together under the same policy.

The specific coverages offered can vary depending on the insurer and your business needs. However, typical coverages include:

• Bodily injury: Compensation for medical expenses, loss of earnings, and pain and suffering.
• Property damage: Costs of repairing or replacing damaged third party property.
• Legal defence costs: Legal expenses incurred in defending claims are covered by the policy, as are the third party’s legal costs.

However, Product Recall Insurance is not covered under this type of policy, instead it is available standalone.

For more information, please see the Association of British Insurers website for public and products liability guidance.

How Much Cover Do You Need?

The appropriate level of cover depends on the nature and size of your business. Generally higher limits are not particularly expensive, given the low likelihood that a claim of this size will occur. Often, we see increased limits being driven by contractual requirements. That said, we recommend discussing your specific needs with an insurance broker to determine the right amount of coverage.

Protect Your Business with Us

At Daines Kapp, we understand the importance of comprehensive business insurance. Our experienced brokers can assess your specific needs and recommend the right public and products liability insurance policy for your business.

Contact us today for a free quote.