What is Product Liability Insurance?

What is Product Liability Insurance?

Product Liability Insurance: As a business owner, you’re responsible for every product you make and sell. If one of those products is faulty or causes some sort of injury, your business could be held accountable for the consequences that follow. Product liability insurance can help mitigate the losses from these types of situations.

Business is an inherently risky proposition, as a manufacturer/trader you can fall victim to complicated and expensive lawsuits due to a possibility that your product could cause damage to a third party. This policy covers claims, which the insured becomes legally liable to pay to third parties as a result of bodily injury or property damage arising out of the use or consumption of products manufactured, sold and /or distributed by the Insured.

What is Product Insurance?

Public and Products Liability insurance protects you against your legal liability to customers, clients and members of the public, i.e. third parties (not employees) for- Bodily injury, and. Property damage arising out of the business’ activities and products.

Product liability is covered under a general liability policy. The combined coverage is called products-completed operations liability. This coverage is included in Coverage A, Bodily Injury, and Property Damage Liability.

You have a liability under common law to not do any damage to anyone or their property or cause them to suffer a financial loss. … Public Liability insurance covers legal liability for claims arising out of personal injury or property damage as a result of an occurrence in connection with your business activities.

What Is Product Liability Insurance

Commercial general liability insurance: Commercial general liability (CGL) insurance is designed to protect you and your business from a loss if you’re found legally liable for bodily injuries or property damage to a third party caused by the product you sell or the service you provide. CGL insurance can also offer protection in situations where you or your employees are conducting business offsite.

What Is Product Liability Insurance

Cyber risk and data breach coverage: Cyber attacks are an ongoing threat to small businesses and have continued to rise recently. Cyber event expense coverage is designed to help small businesses that rely on technology mitigate some of the expenses that may incur as a result of a cyber hack.

Professional Liability: If one of your clients or customers claims your advice caused them a financial loss, your professional liability coverage can help you recover from the financial consequences that may incur. This coverage is also known as errors and omissions (E&O) coverage.

Property insurance: As a small business owner, you likely rely on your property, tools, equipment, and technology to help keep your business running. If one of those key pieces of the puzzle was damaged and needed repair, you may not be able to continue operations. This is when you need property insurance coverage.

Equipment breakdown insurance: Your equipment is covered in your property insurance policy for damage caused by external sources, such as fire, floods and weather damage; however, you may not be covered for electrical or mechanical damage. In these situations, you’d look to your equipment breakdown insurance.

Commercial auto insurance: If you or your employees use your vehicle for business purposes you need commercial auto insurance to protect that vehicle in ways your personal auto policy may not be able to.

Product Liability Insurance Quote

We provide public liability quotes and tailored business insurance packages for all types of business and our policies provide cover across all states including NSW, QLD, Tasmania, South Australia, Northern Territory, and Western Australia. For more information, please select your type of industry below:
•      Health Care
•      Real Estate
•      Entertainment and Media
•      Professional Services
•      Not-for-profit
Does your profession sit outside these industries? 
Take a look at our business insurance cover to help protect your business against a wide range of risks.

If you provide products to your customers, it’s important to protect your business against claims of damage or injury that may arise from these products. Product liability is often included in our industry-specific business insurance packages.
These packages are tailored to meet the unique requirements of your business. As well as product liability, for complete coverage, you may also include public liability insurance and professional indemnity cover.
What is Product Liability Insurance?   
Product liability, also known as general liability is usually included as part of a policy. It is designed for professionals who supply products to their customers or to members of the public. Product liability insurance protects against claims of personal injury or property damage caused by products sold or supplied through your business. It is designed to help protect your business by ensuring that if this happens, you don’t have to pay any legal or court costs.
Do I need Product Liability Insurance?
Product liability insurance is recommended for any business that supplies products. Even with products that appear entirely safe, there’s always the potential for something to go wrong – and accidents do happen. Claims of personal injury or property damage arising from product use (or product failure) can be incredibly expensive, and even if you’re not at fault, you may still incur considerable legal costs while defending yourself.

Product liability insurance safeguards your business by providing cover against such claims, including legal defense costs. So you can confidently go about your work, knowing that you’re protected if something goes wrong.

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