How Can You Differentiate Between Public Liability Or Product Liability Insurance?

The difference between public liability and products liability is diverse, despite both product and public liability being offered as a complete policy together or can also be offered as add-ons. Products liability insurance can’t be offered as an impartial product. Both of the insurance policies are covered for the third-party claims in case there is damage or injury to the third parties in different circumstances.

The public liability insurance works in the condition when the claim is associated with the delivery of your services but product liability insurance works in the condition when the claim is associated with the products you have made supplied or sold. Businesses are prone to accidents so you need to take a look at the differences between public liability and product liability insurances so that no harm be done to your business.

What Is A Liability Policy?

In day today course, the accidents took place at the business, sometimes the damage is restricted to the property or products of yours but sometimes this may be the reason for the damage of products or property of the third party and in that specific case, the business is legally liable to pay for the damage or injury. The damage or injury can be there if the services you offered or the product you made, sold, or supplied be the reason for the injury or damage. Having the liability policy at the time will make you save the financial risk that can be there when claims are asked. Even when the claim is made, then the policyholder can pay for the costs to defend investigate, or settle and can also pay the compensation to the injured party.

What is Public Liability?

As the name suggests public liability is a term that describes the liability to a public or any third party for your business. When we say in the policy term, then public liability means you are legally liable to pay to the third party in case there is personal injury or property damage or any other injury happens connected to your business.

For Example: In case, any customers come to your premises and suffer injury from any of your equipment or have met with an accident due to negligence of your employees or services. Another example is when you are working in the clients’ location and you caused damage to their products or property like dropping a hammer on the marble floor, breaking glass, etc. in another example, when there is a fire at your place and your neighbors are not able to go to their premises as they damage is done to their premises as well. In this case, you have to pay for the goods and for the temporary location they have shifted.

What Is Product Liability?

As the name suggests product liability is insurance there for the purpose to apply a limit when the policy claim is made and is there due to the product of the business. In simple words, having the product liability means you are legally liable to pay for the property damage or the personal injury due to arising out of any products or it also goes with the warranty made at any time for products, but when the personal injury or property damage took place after the physical control of such products has been surrendered to others. To consider whether the products can be asked for the claim or not, you need to keep in mind that anything that is made, repaired, services, altered, grown, installed, erected, sold, treated, changed, bottled, soft supplied, labeled, resupplied, imported, exported and distributed by your business can be asked for product liability. Even packaging, advice, warnings, or labeling also came under the category of insurance.

For Example: If you are a manufacturer of hot water bottles and some of their bursts or broken and that results in burns or bruises to customer. In another example, if you are in a flour business and supplied material for the large bakery and in case, the flour is contaminated and the products made by the bakery further make anyone ill or they are not liable to pay when they will get to know about the contaminated flour. People who imported the components manufactured in other countries to prepare your products but if you found it contains something unsafe, then being the responsible citizen you will be liable to pay if deliver something unsafe.


Now, both the insurance policies are explained, but when we talk about the difference then the liability policy will be issued in two limits one is for public liability and another for products liability. So, whether both of them are different from each other still, they are interconnected and make one other complete. When you are looking for any insurance policy for yourself or wanted a protection plan for your business, they can contact Integrity insurance solutions. We are the leading expert insurance broker Brisbane. With our years of experience in work, we managed to offer several clients their customized plans. To get the one, you can contact our team of experts today and they will guide you with the expert advice and guidance suitable for you.

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