Product Liability vs Professional Liability Insurance
Product liability insurance covers physical harm caused by a product. Professional liability insurance covers negligence or mistakes in professional services. For example, if an appliance malfunctions and injures someone, product liability insurance would cover it. If a professional makes a mistake that financially harms a client, professional liability insurance would cover it.
Retailers and Liability Insurance
Retailers often need product liability insurance to cover costs if a defective product they sell causes harm. For example, if a power adapter they sell lacks a warning label and causes electric shock, they could be sued. Product liability insurance would cover legal fees and compensation.
Types of Business Insurance
- General and Professional Liability Insurance:
- General liability covers bodily injury and property damage claims.
- Professional liability protects against claims of negligent advice or services. If incorrect professional advice causes a client financial loss, professional liability insurance would cover legal costs and compensation.
Public Liability vs Professional Indemnity
- Public vs Professional Liability Insurance:
- Public liability is tailored for claims by members of the public for injury, illness, or damage.
- Professional indemnity covers claims by clients for professional mistakes or negligence.
Types of Liability Insurance
Liability insurance comes in three main types: public, employer, and product liability. Each covers injury, illness, or damage due to business activities. Indemnity insurance covers financial loss from professional mistakes.