Public and Product Liability Insurance

Indemnify yourself against public liability claims

A Public Liability Insurance is created to indemnify you against the compensation and legal costs you may be legally liable to pay for bodily injury to anyone or damage to a third party’s property, caused by your business.

Usually there is an agreed limit, called the limit of indemnity of the policy, for claims for compensation respect of any accident, and sometimes for a limit for any one period of insurance. We strongly advise to get significant coverage of protection. Litigation costs are normally figured as an addition to these limits.

There are a number of important exceptions to the Public Liability cover:

  • Liability resulting from your own deliberate acts or acts of omission that could reasonably have been expected or foreseen.
  • Liability you have assumed under some contractual arrangement.
  • Injuries to employees - these should be covered under an Employee’s Compensation policy.
  • Damage to your own property - this should be covered under a Material Damage policy.
  • In some cases, the explosion of boilers and pressure vessels. But such an exclusion can be deleted in return for the payment of an additional premium, or else cover can be given under a Machinery or Boiler Explosion policy.
  • Claims arising from vibration or the removal or weakening of support. However, in the case of building or civil engineering contractors, special provision can sometimes be made for this contingency under a Contractor’s All Risks policy.
  • Claims arising from your vehicles used on public roads, vessels and aircraft. More specific policies can be arranged for these claims.
  • Liability resulting from the use of lifts, cranes and the like - unless special arrangements are made.
  • Liability resulting from pollution or contamination.
  • Any breach of professional duty. This should be covered under a Professional Indemnity policy.
  • War, nuclear and radioactivity risks, and the like.
  • Liability resulting in any commodity, article or thing supplied, repaired, altered or treated by you. Those would have to be insured under a Products Liability policy.


Products Liability Insurance is a topic deserving further explanation. As already implied, the basic Public Liability policy does not usually cover liability for injury or damage caused by goods and service which you have supplied.

This Liability can be covered either by extending your basic policy or else by arranging a separate Products Liability policy or a Goods Supplied policy. Cover under these policies is broadly similar to the basic Public Liability cover, but usually there is a specific limit for claims occurring during any one period of insurance.

For both Public and Products Liability, the trend now is for insurers to pay claims only if the claim is first made within a specified legal jurisdiction.

Contact us for more information