Public Liability Insurance
Public liability insurance covers claims made by the public due to injury or property damage inflicted on a non-employee. For example, if a customer slips and falls on your premises and sustains an injury, your public liability insurance can cover the costs of medical bills and any legal fees that may arise.
As a business owner, you have a duty of care to your customers and clients. Public liability insurance provides protection against your legal liability to third parties if you are found responsible for an injury or property damage.
The level of public liability insurance cover you need is related to the amount of risk faced by your business. Cover can range from £2 million to £10 million or more. Some clients may dictate a minimum value of cover.
Public liability insurance doesn’t cover injury or death of employees, damage to your own property, or professional errors. It is not legally required in the UK, but many businesses or organizations may not work with you if you don’t have it.
Product Liability Insurance
Product liability insurance provides coverage for damages or injuries that occur to third parties as a result of your products. If someone is harmed by your product, your insurance can cover the costs of medical bills, legal fees, and any settlements or judgments.
Product liability insurance is usually bundled with public liability insurance under a commercial general liability policy to protect businesses that supply goods to the public. If the court finds your business legally liable for an illness, injury or property damage related to your products, the insurance covers compensation costs.
Public liability and product liability are insurances that can be bought together as a bundle under commercial general liability insurance. They are both top insurances needed to protect the business’s liability when things don’t go the way planned.
Who Needs Product Liability Insurance?
- Any business that sells, distributes, or manufactures products needs it.
- This includes wholesalers, retailers, and manufacturers.
- It protects them from potential financial losses due to lawsuits arising from product defects.
Product liability insurance is essential for businesses that make or sell products. It helps cover costs related to legal claims over defective products that caused injury or damage. This type of insurance protects manufacturers and retailers financially in case of such incidents.