Product and Public Liability Insurance – Why are They Required?

by Jesus Dover Public Liability Insurance

Running a business entails being able to face challenges and deal with uncertainty. What if someone visits your business and suffers serious injuries or dies? What if a product manufactured by your company causes an allergic reaction in a consumer, resulting in a third-party claim? Such incidents can be covered by public and product liability insurance. Continue reading to learn more about these types of insurance. Both types of insurance are distinct, but they are frequently provided under the same insurance plan.

What is public liability insurance?

You cannot run a business unless you interact with the public. Public liability insurance is a type of business insurance that covers the costs of claims made by the public in connection with business activities. It pays for personal injuries, death, and property loss or damage. This type of insurance provides coverage only for incidents that occur on the business premises. Any other incident that occurs outside of the business premises and results in third-party claims is not covered by public liability insurance.

Reasons for buying a public liability insurance

Being conscious about workplace safety reduces but does not eliminate the risk of harm. That is why public and product liability insurance are required.

Buy public liability insurance if:

Your business premises are open to public

If your business premises are open to the public, someone could be injured by sharp objects or slip on the floor. Third-party claims may result from such incidents, and having public liability insurance can protect you.

You work on other’s premises

Professional service providers may be required to visit the premises of others in order to provide their services. Public liability insurance covers legal fees and compensation claims if a third party is injured or their property is damaged while conducting business. Accidental damage, such as breaking a vase, is also covered by public liability insurance. Tradesmen, cleaners, and gardeners needed this insurance because their jobs required them to work on other people's properties for extended periods of time.

Your products can harm someone

No product manufacturer intends to harm its customers, but there are times when a product inadvertently harms someone. It could be a case of skin disease caused by a specific cosmetic or food poisoning caused by a restaurant menu. Purchase public liability insurance to cover compensation payments as well as other legal expenses.

You have a growing business

Although public liability insurance is not required by law for small businesses, it is required by some UK authorities when dealing with third-party claims. Purchase one if you want to avoid the more expensive settlement claims.

What is product liability insurance?

Product liability insurance protects product manufacturers and distributors from legal claims resulting from bodily harm or property damage caused by the product. Product liability insurance covers the following:

·         Design defects – when there is an issue with the shape, structure, or design of the product.

·         Manufacturing defect – when there is a fault during the manufacturing process.

·         Marketing defect – marketing defects with the product include improper labelling and false information about the usage of ingredients used.

·         Improper warning – the absence of warning against potential harm.

 

Reasons for buying a product liability insurance

Product liability insurance is important for any business that manufactures or sells products. Distributors, importers, and other parties involved with the product require this insurance as well for adequate coverage during legal claims.

Having product liability insurance provides the following benefits:

Coverage against production flaw

One of the most important reasons to purchase product liability insurance is to be protected against manufacturing flaws that result in dangerous defects in the product.

Protection against designing defects

Some products perform well during the taste and trial phases but have dangerous flaws due to design flaws. Product liability insurance covers design flaws that render a product dangerous.

Deals with packaging and warning issues

Manufacturers are sometimes unable to provide adequate information about the uses, types of raw materials, and other warnings. This may result in large compensation claims, which can be addressed with the help of product liability insurance.

How to compare public and product liability insurance?

Looking for cost-effective insurance? Comparing public and product liability insurance is important in order to find the best insurer among the available options. Public Liability Insurance aims to provide the best insurance advice and service to Australian traders and businesses. By visiting the Public Liability Insurance website, business owners can easily obtain an online insurance quote. For more information, please contact the client-friendly brokers at 1300 542 245. Improve your communication skills and obtain public liability insurance that is specific to your business or occupation.

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Created on Nov 13th 2022 23:39. Viewed 182 times.

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