What is the Difference Between Public Liability and Product Liability Insurance?

What is the Difference Between Public Liability and Product Liability Insurance?

Both policies provide third party liability insurance protection to the policyholder that is to say that they protect the policyholder against claims made against them by third parties in respect of the policyholder’s legal liability for personal injury or property damage.

Any confusion that may exist between the two classes of insurance is made worse by the fact that product liability is usually offered as an extension to a public liability policy or as an extension to the public liability section of a combined or package insurance policy.

In spite of this the two insurances are actually quite distinct are intended to protect policyholders against almost entirely different risks

What does a public liability policy cover?

The public liability policy protects the policyholder in respect of claims made against them in respect of their legal liability for personal injury or property damage arising out of and in the course of their occupation. For a more complete overview visit our main public liability insurance page.

What does the product liability policy cover?

The product liability policy protects the policyholder against claims made against them in respect of products sold or supplied by them.