What You Need to Know About the Differences between Product and Public Liability Insurance


If you’re not up to speed of things in the world of insurance it just might be time to catch up!

What are commonly known as product liability and public liability insurance, are two distinctive kinds of insurance policies which people in the business of selling goods can possess.

However, these two types of insurance offer very different protection:

  1. Product liability insurance safeguards the policy holder from any harm caused by a product due to a fundamental quality of the product or fault in the product.
  2. Public liability insurance protects the policy holder from any injury which has taken place on his or her property because of carelessness in its upkeep.

The Major Difference

The point where product and public liability insurance are dissimilar is in the injuries in which they cover. Anyone who is seeking clarity concerning such matters, should consult with specialists such as Onsite Insurance Quotes, and talk to people in the know.

Products Liability

Product liability lawsuits normally emerge if there is a hazardous quality or defect in a product which has resulted in an injury to the user. The plaintiff in such a liability suit must show that he or she utilised the product in the same way that similar products are commonly put to use.

For instance, if someone bought a children’s scooter with a faulty brake and the child suffered an injury whilst riding as a result of the glitch, then a products liability action can then be undertaken and the product liability insurance covers all of the damages.

Public Liability

Negligence lawsuits against people who run a business where people come and go to shop are applicable to public liability insurance. For example, if the area outside of a shop is hazardously icy, it is then the full responsibility of the shop owner to clear the area and make it safe. If this wasn’t to happen and someone has an accident and gets hurt, that same person can bring a lawsuit for negligence against that shop owner.

  • Product and public liability insurance will not usually cover any damages for this type of lawsuit, even should the owner hold both kinds of policies.
  • Any injury of this type is limited to public liability insurance.

More Differences

Product and public liability insurance policies also differ in the actions by the policyholder that might lead to enforcing their coverage. Products liability cases can occur through no fault of the holder because they will be held to strict liability.

Meaning, the seller or maker of the component can be made accountable for any harm to the plaintiff because of the fact that the product was faulty and the plaintiff was harmed, even if the seller’s or maker’s actions were in any way the direct cause of the defect.

Fully Covered

It is advised for anyone in the business of selling products, to hold both product and public liability insurance policies to make sure they are fully covered.