Public / Product Liability Insurance

Public and products liability are essential insurance covers for UK businesses. Without them there would be no protection from the potentially enormous costs of legal fees and payouts resulting from an accident or injury caused by the business’ activities. While these could ruin the company, it could be a tragedy for an injured party unable to get fair compensation.

Public liability covers awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business. It covers the business whether the incident occurs on your property, or theirs. It also meets the costs associated with the award, like legal fees, costs, expenses or medical treatment.

In the UK the public and customers expect their suppliers to hold appropriate levels of insurance for the nature of the business, so proof may be a condition of any contract. Similarly, if the business sells or even gives away any goods, the public have a right to expect these to be fit for purpose. So damage or injury caused by them or their use may result in liability claims, even if the business only supplied the item not manufactured it. In the UK, the NHS may even claim the costs of medical treatment, if the courts find against the supplier.

Product liability insurance covers you against damages awarded as a result of damage to property or personal injury caused by your product. It’s important to appreciate that, given the legal culture in North America, the damages awarded can be quite staggering sums. The types and levels of cover suitable for a business will be governed by its nature and activities, but also affected by considerations like liability laws in other countries that it trades or operates in. As always cover must be shaped to suit the individual requirements of each business.

Key phrase: Product liability insurance