Public & Products Liability Insurance
Public liability insurance can help to protect your business from the financial risk of liability claims – giving you the certainty you need to trade with confidence. Product liability insurance is designed to help protect your business if you’re sued because a product you sell, assemble or supply has caused harm to a person or property.
What is public liability insurance?
If an accident or unforeseeable incident causes damage or injury to someone caused by your business (other than your employees), you may be found legally liable to cover the costs.
Public liability insurance can help to protect your business from the financial risk of liability claims – giving you the certainty you need to trade with confidence.
What is product liability insurance?
Mistakes can happen – no matter how stringent your business is. For example, you design or sell a product that causes a customer harm. Even if you’re not at fault, you could risk serious financial damage through legal costs and court costs if a customer decides to sue you.
Product liability insurance is designed to help protect your business if you’re sued because a product you sell, assemble or supply has caused harm to a person or property.
Who should consider public & product liability insurance?
While public & product liability isn’t mandatory for most businesses, it is recommended for all companies. That’s because the unpredictable nature of accidents that make them hard to prevent – and the costs of being sued can be extraordinarily high.
What can public & product liability insurance cover?
Public & products liability insurance helps protect your business to third parties, including clients, customers and the public for injury or damage to their property, caused by your business. It can even cover emotional distress or shock that your business causes to another person.
It will generally pay your costs of investigating, defending and settling claims as well as any compensation payment you are found legally liable to pay.
Depending on your policy, public and products liability may cover:
|Type of cover||Potential benefits|
|Personal injury||If somebody is wrongfully injured by your actions or your product, public & products liability can cover you for liability to pay damages to the claimant.|
|Property damage||If your property is damage due to your actions or your product, public & products liability insurance can cover you for your liability to pay damages to the claimant.|
|Advertising injury||Liability arising out of advertising carried out by or behalf of the insured.|
What usually isn't covered by public & products liability insurance?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on the nature of the product you are purchasing, the associated risk, the insurer and the requirements of your business.
Policies generally do not include cover for:
- Costs of rectifying faulty workmanship
- Damage to your own product
- Claims by employees
- Claims arising out of the use of a registered motor vehicle
- Claims related to asbestos
There are exclusions which are specific to each type of policy, which your Westphalian insurance broker can outline for you.