WHAT COULD GO WRONG AND WHY YOU NEED
PUBLIC & PRODUCTS LIABILITY INSURANCE
What Public & Products Liability Insurance Covers
Public & Products Liability Insurance protects your business if a third party is injured or their property is damaged as a result of your business activities or products.
Typically, it covers:
Third-party injury – if someone is injured at your premises or due to your business activitiesThird-party property damage – if you accidentally damage someone else’s propertyProducts liability – claims arising from injury or damage caused by products you supply, manufacture, or installLegal defence costs – legal fees and expenses to defend a claim against your businessCompensation costs – settlements or court-awarded damages payable to third parties
❋ Scenario 1 Customer Injury On-SiteA customer visits your premises and slips on a wet floor that hasn’t been properly signposted. They suffer an injury and make a claim against your business for medical expenses and damages.
❋ What is covered by Public & Products Liability InsurancePublic liability insurance can cover the legal defence costs, medical expenses, and any compensation payable to the injured party.
❋ Scenario 2Damage Caused by Your WorkWhile carrying out work at a client’s property, you accidentally damage a glass door and nearby fixtures. The client seeks compensation for the repairs.
❋What is covered by Public & Products Liability InsurancePublic liability insurance can cover the cost of repairing or replacing the damaged property, along with any associated legal costs if a claim is made.
What’s Usually Not Covered by Public & Products Liability Insurance
Intentional or criminal acts by the business or its employeesFailure to maintain basic security standards (e.g. no antivirus, no updates, weak passwords)Intentional or dishonest acts by the business owner or senior managementContractual liabilities where you have agreed to terms beyond your normal legal responsibilityLoss of future profits beyond the defined interruption periodReputational damage only (without a measurable financial loss)Hardware wear and tear or non-cyber-related system failuresWar, terrorism, or state-sponsored cyber attacks (varies by insurer)Fines and penalties that are not legally insurable