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Public & Products Liability Cover

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What does public & products liability cover?

Public & Products Liability

Public and products liability insurance provides crucial protection for businesses, covering the legal and compensation costs associated with injury or damage caused by a company’s activities or products.

Why Do You Need Public and Products Liability Insurance?

Legal Protection

These insurances provide vital legal protection. If someone gets hurt or their property gets damaged because of your business activities or products, you could be taken to court. These insurances help cover the legal costs, which can be very high.

Financial Stability

Without this insurance, you would have to pay for legal and compensation costs from your pocket. This could put a massive dent in your business finances or even bankrupt your business.

Credibility and Trust

Having public and products liability insurance enhances your business's credibility. Customers, suppliers, and other stakeholders trust businesses that are insured because it shows that you’re responsible and prepared for unforeseen incidents.

What Does Public Liability Cover?

Public liability insurance provides coverage when your business is found liable for personal injury to a third party (someone not employed by you) or damage to their property. Here’s what it typically covers:

  • Injury to Third Party: If a customer slips and falls at your business premises and gets injured, public liability insurance can cover their medical costs and compensation.
  • Property Damage: If your business activities cause damage to someone else’s property, public liability can cover the repair or replacement costs.
  • Legal Costs: This insurance also covers the legal costs associated with defending a claim, whether you are at fault or not.

What Does Products Liability Cover?

Products liability insurance is vital for businesses that manufacture, sell, or distribute products. It provides coverage in cases where your product causes injury or property damage. Here’s what it can typically cover:

  • Defective Products: If a product you sell is defective and causes harm to a customer, products liability insurance can cover compensation and legal costs.
  • Design Flaws: If a design flaw in your product causes an accident, this insurance can help cover the associated costs.
  • Inadequate Instructions or Warnings: If your product does not have proper instructions or warnings and it leads to an accident, products liability insurance can provide coverage.

Disadvantages/Advantages or Pros/Cons

  • Risk Management: These insurances help manage the financial risks associated with legal claims.
  • Business Continuity: They ensure that your business can continue operating even after an incident.
  • Reputation Management: Being insured helps protect your business’s reputation in case of an incident.
  • Cost: The premiums for these insurances can be high, depending on the level of risk associated with your business.
  • Policy Exclusions: There might be certain exclusions in the policy, leaving you unprotected in specific scenarios.

Common misunderstandings

What are some common misunderstandings about public and products liabiltiy cover?

  • It Covers Everything: A common misunderstanding is that public and products liability insurance cover all risks. They do not. Understand the exclusions and limitations.
  • Only Big Businesses Need It: Businesses of all sizes can be sued. Even small businesses need public and products liability insurance.
  • It’s Too Expensive: While the premiums can be high, the cost of not having insurance when you need it can be much higher.

How can Gerrards help?

At Gerrards, we specialize in business insurance, and we understand the unique needs of businesses in New Zealand. Here’s how we can help:

  • Expert Advice: Our team of experienced brokers can provide expert advice to ensure you get the right coverage for your business.
  • Tailored Solutions: We offer tailored insurance solutions to meet the specific needs of your business.
  • Ongoing Support: We provide ongoing support to ensure your coverage remains adequate as your business grows and evolves.

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