What is Public and Products Liability Insurance?
As a business owner, if you accidentally damage someone’s property, or someone becomes injured due to your negligence, a Public & Products Liability insurance policy will cover any settlement you are legally liable for. The policy will respond to claims arising from the conduct of you and your employees as well as your products.
The policy will also cover legal costs incurred in the defence of the claim. Sometimes, this can be the most costly part of any claim, especially involving injury.
Who should consider it?
We believe that every type of business has some degree of public & products liability exposure. Whether you are a sole trader, partnership or company providing an office based professional service or blue collar trades, there is still the risk that someone may be injured or someone’s property could become damage.
Consider the following claims examples:
- A customer trips in your office, store or home office
- A patron slips on wet floor within the shopping centre or car park you manage
- As a tradie working at a client’s home, you accidentally drill through a wall into a water pipe
- A roof tiler fails to properly secure a tarp to an exposed roof overnight and it rains, causing water damage to the property
- Whilst a gardener is mowing a lawn, a rock flicks out from under the lawn mower, breaking a glass window
- A traffic controller fails to properly secure a road sign and in string winds, the sign moves and causes damage to a parked car
- Whilst spray painting a building the wind drifts the spray onto a neighboring property
- A cleaning contractor uses a new cleaning product on a stainless steel appliance which corrodes the finish
- A forklift operator loses control on a job site and crashes into a car on the site
There are many more examples for all different industries.
Case Study:
A security company provides crowd control services at a bar. Their duties include evicting
unruly and intoxicated patrons in breach of Responsible Service of Alcohol legislation.
Whilst evicting one such individual from the premises the security guard has to physically
restrain the patron. The individual alleges injury has been caused to his arm and sues the
security company.
A claim is made against the company’s public liability insurance policy and the matter is
defended by the insurer. In the event the guard has been negligent and the company is
deemed liable for the injury, the policy will pay the claim and any legal costs incurred.
What can it cover:
- Your legal liability to pay compensation, including claimants’ costs, fees and expenses, for personal injury & property damage arising in connection with your business or products
- Costs and expenses incurred in the defence of the claim
- Investigation costs incurred in order to determine liability
- Representation at an inquest, inquiry or other proceedings related to the claim
- Emergency medical expenses incurred by you in treating an injured person
- Indemnity extended to directors, employees and work experience persons
- Vicarious liability arising from the actions of contractors
What isn’t covered:
- Registered motor vehicles
- Aviation products (including drones)
- Cyber liability
- Loss or damage to your own property
- Fines & Penalties
- Injury to your employees
- Deliberate acts
- Assault or battery
- Professional Liability
- Most policies offer worldwide coverage, excluding in the USA or Canada
Other exclusions will apply and you should review any quote received carefully and consider the policy wording for all policy terms, conditions, exclusions and limitations.
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