Business Insurance
Public & Products Liability Insurance
An injury at your premises or damage caused by a product can become a claim against your business. Public and products liability insurance may respond to your legal liability to third parties, rather than the cost of repairing your own property.
What it can cover
Depending on the wording and the circumstances, cover can include:
- Compensation for third-party personal injury or property damage arising from your business activities.
- Liability arising from products you manufacture, import, supply or sell.
- Defence and investigation costs for a covered claim, subject to insurer consent and policy limits.
Common risks and exposures
A customer slips in a shop, a contractor damages a client’s premises, or a supplied component causes damage after installation. Work away from your own premises, subcontracting, imported goods and overseas sales can each change the exposure.
Who may need this insurance
Retailers, trades, manufacturers, wholesalers and service businesses may face these risks. Landlords, clients or principal contractors may also require evidence of liability insurance; meeting a contract’s limit does not, by itself, establish that its obligations are covered.
What KIB Group considers
- Your actual activities, turnover, locations and use of subcontractors—not simply a broad occupation label.
- The products you supply, their intended use, quality controls and countries where they are sold.
- Contractual indemnities, requested limits, claims history and exclusions relevant to your work.
Exclusions and considerations
Professional advice, employee injury and motor vehicle liability generally require separate consideration. The cost of replacing a defective product or recalling it is not the same as damage it causes to someone else. Property in your care, custody or control may be excluded or subject to a sublimit; contractual promises can also extend beyond insured liability.
Questions worth asking
Does public liability cover mistakes in professional advice?
Not usually. Claims about advice, designs or professional services are generally considered under professional indemnity insurance. A business that supplies both services and physical products may need to review both covers and how their exclusions interact.
Is product recall included in products liability insurance?
Do not assume it is. Products liability may respond to injury or property damage caused by a product, while the costs of withdrawing, replacing or recalling that product often need separate cover. The cause of the recall and the policy wording matter.
Related insurance
Already need to notify a claim? Public & products liability claims.
Cover starts with a conversation.
Talk with our Melbourne-based team about your business, wherever you operate in Australia.
This is general information, not personalised financial product advice. Cover varies and is subject to policy terms, conditions, limits and exclusions. Consider the relevant policy wording and your circumstances before deciding; an enquiry does not bind cover.
