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Insurance Cover Overview: Public/Products Liability Insurance

The only way to effectively protect the assets of your business is to carry adequate insurance cover. Liability insurance protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.

What Does Public/Products Liability Insurance Cover?

A comprehensive public and product liability policy provides cover for claims of bodily injury or other physical injury, personal injury, advertising injury and property damage as a result of your products, premises, or operations. As a safeguard against liability, the policies allow you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. Liability policies also provide cover for the cost to defend and settle claims. Typical liability policies may cover:

  • Personal and Advertising Injury – Protects against offences made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
  • Defence Costs – Provides cover for legal expenses for liability claims brought against your business, regardless of who is at fault.
  • Medical Expenses – Provides cover for medical expenses if someone is injured on your premises or by your products.
  • Premises and Operations Liability – Provides cover for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
  • Products Liability – Provides cover for bodily injury and property damage sustained by others as a result of your products. 

How Much Cover Does Your Business Need?

The cover that your business needs depends on:

  • Perceived Risk – Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more cover than another organisation that manufactures stuffed animals.
  • Business location—Depending on where you operate your business, you may face different risks. For example, manufacturing in an area with an increased likelihood of property damage or theft will likely equate to the need for more cover.
  • Type of Product Manufactured – If you manufacture a dangerous product, you may want to carry higher limits of liability. 

Other Ways to Protect Your Business

  • Establish a high standard for product quality control at your organisation.
  • Keep all company records up to date and accurate.
  • Train your employees thoroughly and properly.
  • Ask Sirelark Risk Services for safety and compliance information.

Typical Exclusions and Limitations

  • There will typically be an excess requirement for each claim. The excesses will vary depending on the policy and covers sought.
  • Injury to your own employees or to your own property is not covered under Public/Products liability insurance. Make sure you have Employers’ Liability insurance and adequate Property insurance.
  • War, terrorism or nuclear risks are typically not covered.

Sirelark Risk Services understands that your business needs to be protected, and we are here to help! Please contact us today at 01603 343 053 to learn more about our risk management and insurance solutions.

The content of this Cover Overview is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2008, 2012-2013 Zywave, Inc. All rights reserved.

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