Understanding Public and Product Liability Insurance for Business Owners

Public liability insurance protects businesses from financial losses resulting from accidents or injuries that occur on their premises. This type of insurance is a must-have for any business that interacts with the public.

In the UK, for example, public liability insurance is a legal requirement for certain businesses, such as those in the construction industry. This is because the construction industry is considered high-risk, and the government wants to ensure that businesses in this sector have adequate insurance coverage.

Public liability insurance can also provide coverage for businesses that sell products to the public. For instance, if a customer slips on a spill in a store and gets injured, the business may be liable for damages.

Public liability insurance helps ensure your business is covered for any costs or damages to third parties on your property or caused by your services. This could involve a customer who slips and falls in your business premises or an employee who is injured while working.

Public liability insurance covers defence costs and your legal liability to third parties. Allegations of bodily injury or damage to property caused by you during the course of your services trigger a claim.

Public liability is suitable for any business, but those who visit client sites and/or provide some form of manual labour are at higher risk of relevant claims. This policy is not a legal requirement, but is often stipulated in client contracts.

Product liability insurance, on the other hand, is designed to help your business pay for claims of third-party bodily injuries or property damage caused by your products. This includes injuries or damages to third parties caused by manufacturing defects, design defects, or failure to provide adequate warnings.

Product liability insurance covers defence costs and your legal liability to third parties. Allegations of bodily injury or damage to property caused by a product you supplied trigger a claim.

Businesses which manufacture and/or sell goods need product liability insurance. This policy is not compulsory by law, but can be included as an add-on to a public liability policy.

Here's a comparison of public and product liability insurance:

Protecting your business from costly losses is crucial, and public and product liability insurance can help with that.

Chubb public and products liability insurance covers costly losses caused by issues with your products or services.

This type of insurance also covers the costs of claims made by the public for incidents that occur in connection with your business activities.

Creative problem-solving is key, and Chubb's approach is tailored to each client's unique needs.

Their playbook is always evolving, helping clients avoid risk in smarter ways.

This means Chubb brings the latest thinking and a fresh perspective to solving your challenges.

Public liability insurance covers damages arising from injury to the public or damage to their property, and can be triggered by allegations of bodily injury or damage to property caused by you during the course of your services.

Public liability insurance is suitable for any business, but those who visit client sites and/or provide some form of manual labour are at higher risk of relevant claims. This policy is not a legal requirement, but is often stipulated in client contracts.

Public liability insurance can be offered as a combined policy with products liability insurance, or as an add-on.

Here's a comparison of public liability and products liability insurance:

Products liability insurance, on the other hand, covers damages arising from injury to the public or damage to their property caused by a product you supplied, and can be triggered by allegations of bodily injury or damage to property caused by a product you manufactured, supplied, or sold.

Public and product liability insurance is designed to protect you from financial losses in case of accidents or damages.

Damages arising from injury to the public or damage to their property are covered, as are costs to defend proceedings against you under legislation relating to corporate manslaughter, health and safety, data protection (up to £500,000), defective premises, food safety, and consumer protection.

These costs can include defending against claims related to your products, which is a critical aspect of public and product liability insurance.

Public Liability insurance is a crucial coverage for businesses, and understanding its basics is essential. It provides protection against third-party injury or property damage that occurs while you're on the job.

Public Liability cover includes damages arising from injury to the public or damage to their property.

You might be wondering what's not covered under Public Liability insurance. Injury to employees, for instance, is specifically covered by Employers' Liability insurance, which is a legal requirement if you have employees.

Liability arising from pollution, except for sudden and unexpected incidents, is also not covered.

Here's a brief rundown of what's covered and what's not:

Using an outdated method, like public liability insurance, can be confusing and lead to misunderstandings. Most people who write contracts today are not insurance professionals, which is why outdated terms like public liability are still being used.

Insurance companies today use general liability insurance, which is a more comprehensive and relevant coverage for businesses. General liability insurance is what you should be looking for, not public liability.

You might see public liability listed in old contracts or agreements, but it's not a standard option offered by most insurance carriers. This doesn't mean it's not covered, it just means you need to look for general liability insurance instead.

The term "public liability" was used by insurance carriers like Lloyds of London, which was established in the 1650s in England.