The difference between public liability and products liability insurance is quite distinct, despite products liability and public liability being offered as a combined policy (as with Qdos policies) or sometimes as an add-on. Products liability doesn't tend to be offered as a standalone product.
Both public liability insurance and products liability insurance policies cover third party claims for injury or damage to property, however each insurance will react in different circumstances.
Public liability insurance reacts in circumstances in relation to the delivery of your services, whilst Products liability reacts in circumstances in relation to products you have manufactured, supplied, or sold.
For example, if you were to cause injury to, or damage the property of a third party in the delivery of your services such as accidentally leaving a wire on the floor which causes someone to trip and fall, and that person took legal action against you, this could give rise to a public liability claim.
If you sold a client a product which subsequently caused a third party bodily injury or damage to their property, whether from a manufacturing defect, design defect or failure to provide adequate warnings, and the third party took legal action against you, this could give rise to a products liability claim.
Public Liability Insurance
Products Liability Insurance
|What does the insurance cover?||Defence costs and your legal liability to third parties||Defence costs and your legal liability to third parties|
|What triggers a claim?||Allegations of bodily injury or damage to property caused by you during the course of your services||Allegations of bodily injury or damage to property caused by a product you supplied|
|Who needs the policy?||
Public liability is suitable for any business.
|Businesses which manufacture and/or sell goods|
|Is it compulsory?||This policy is not a legal requirement however is often stipulated in client contracts||This policy is not compulsory by law|
|How does it work?||Claims-occurring. i.e. the incident which gives rise to a claim occurs during the period of insurance.||Claims-occurring. i.e. the incident which gives rise to a claim occurs during the period of insurance.
This refers to the time of damage or injury, as opposed to when the product is sold.
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