Public & Products Liability Insurance

Cover at a glance

Public Liability covers your legal liability for injury or damage to a third party due to your actions
Products Liability covers your legal liability for injury or damage to a third party due to a product that you design or sell
Claims are generally infrequent but can be significant when they do occur

Policy Overview

Operating a business comes with the risk of causing harm to third parties or damage to their property, making Public Liability Insurance a crucial safeguard for many businesses. Public Liability Insurance protects your business from the financial exposure that can arise during your day-to-day operations. Whether you’re interacting with customers, suppliers, or the general public, any injury or property damage caused by your business could result in costly legal claims. Public Liability Insurance ensures that your business is protected from these financial risks, allowing you to operate confidently.

Products Liability Insurance, on the other hand, provides protection if the products you design, manufacture, or sell cause harm to a customer. Even if the harm is only alleged, the legal costs involved in defending your business can be significant. Products Liability Insurance ensures that you are covered against these risks, giving you the peace of mind to continue trading. This type of cover is particularly important for businesses involved in manufacturing, retail, or distribution, where defective products could lead to substantial legal claims and financial losses.

While Public & Products Liability Insurance is not mandatory, it is highly recommended for all businesses. Although claims may be infrequent, the financial impact can be devastating. Without this coverage, a single lawsuit could cripple your business. Additionally, it’s important to maintain Products Liability coverage even after you cease trading, as incidents arising from products sold in the past can still occur. This is known as run-off cover, and it’s essential to discuss this option with your insurance broker to ensure continued protection.

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.

Frequently Asked Questions

What is Public Liability Insurance, and why is it important?

Public Liability Insurance covers the legal costs and compensation if your business is held responsible for causing injury to a third party or damaging their property. This could arise from an accident on your premises, faulty services, or while performing work at a client’s site. Without this coverage, your business could face significant financial exposure from legal claims, making it essential for businesses that interact with the public.

Who needs Products Liability Insurance?

Products Liability Insurance is vital for businesses involved in the design, manufacturing, or sale of products. If a product you produce or sell causes harm to a customer, you could face a legal claim, even if the issue is not your fault. This coverage protects you from the financial impact of these claims, including legal defence costs and compensation payments.

Is Public & Products Liability Insurance mandatory for businesses?

While Public & Products Liability Insurance is not legally required for all businesses, it is highly recommended. The financial losses from a liability claim can be significant, and without proper insurance, your business could be left vulnerable to crippling costs. This insurance is particularly important for businesses that interact with customers, suppliers, or the general public, as well as those involved in selling or manufacturing products.

What is run-off cover in Products Liability Insurance?

Run-off cover is an extension of your Products Liability Insurance that remains in place even after your business has ceased trading. It provides protection against claims that arise after you have stopped selling or manufacturing a product but are related to products you sold in the past. This coverage is important because incidents may occur long after your business has closed, and without run-off cover, you may still be held liable.

Can Public & Products Liability Insurance cover legal costs?

Yes, both Public and Products Liability Insurance typically cover legal costs, including the expenses involved in defending your business against claims. This is crucial because even the cost of legal defence for an unfounded claim can be substantial. Your policy will help cover these costs, ensuring that your business is not financially drained by legal proceedings.

What types of businesses need Public & Products Liability Insurance?

Public & Products Liability Insurance is recommended for businesses of all types and sizes, particularly those that interact with the public or sell physical products. Retailers, manufacturers, service providers, contractors, and tradespeople can all benefit from this coverage. Essentially, any business that could potentially cause harm to people or property, or face claims related to its products, should consider this type of insurance to protect against unforeseen financial risks.

Related Services

Management Liability Insurance

Running a business leaves you personally liable as a Director. Any actual or alleged breaches of the Corporations Act could spell disaster for your personal financial situation.

IT Liability Insurance

IT Liability is designed for businesses providing IT services. Cover contains elements of Public & Products Liability as well as Professional Indemnity to address the main exposures that a business in this industry faces.

Professional Indemnity Insurance

Professional Indemnity is mandatory for some industries, but optional for others.

Get In Touch