Public Versus Products Liability Insurance

Posted by Neil on November 25th, 2020

If you are in a business that specializes in manufacturing goods, you should know that it is not easy to have consistency for over a long period of time. It is not always a flawless business and instead there are a variety of bumps to maneuver through.

You want to ensure that your manufacturing business is running as smoothly as possible. The best method to have your business protected at all times is to get insurance. The question you are probably thinking is what type of insurance is needed particularly for the business.

There is a specific type of insurance that is perfect for businesses that specialize in manufacturing goods and it is called liability insurance.

What is liability insurance?

Liability insurance is used to protect against claims resulting from injuries and damage to people or property. You can also refer to liability insurance as third-party insurance.

What does liability insurance cover?

Liability insurance covers the legal costs and payouts for which the insured party would be found responsible. There are some limitations in regards to the coverage for liability insurance.

Liability insurance will not cover any damage done intentionally, contractual liabilities and criminal prosecution.

Now that we have covered liability insurance itself, there are a couple types of liability insurance that need to be addressed and they are called public and products liability insurance.

What is public liability insurance?

Public liability insurance is used to cover the costs for personal injury, loss or damage to property and death. Public liability will only cover incidents on business property. If an incident occurs elsewhere, then the coverage will not be approved.

Now that you understand the purpose of public liability insurance, let’s now discuss products liability insurance.

What is products liability insurance?

Products liability insurance is used to protect against any financial loss that arises out of the legal liability affected by an insured because of injury or damage resulting from the use of a covered product. It also protects businesses from the fallout that occurs in the event that a product causes injury or other damage to third parties.

When it comes to businesses that specialize in manufacturing goods, products liability insurance will be mainly used. For example, consumers could potentially be harmed by how a product is designed, marketed, manufactured or misused.

Even if a product is used incorrectly, your business could still be responsible for any cause of damage. This is where products liability insurance will be applied to handle the damage.

Now that you know about products liability insurance, let’s address the difference between public and products liability insurance.

Difference Between Public and Products Liability Insurance:

You might be wondering that public and products liability insurance are similar to one another. However, that is not entirely true.

There is only one similarity between these two types of liability insurance. Both public and products liability insurance does provide the coverage for third party injury or property damage.

The main difference between public and products liability insurance is that public liability relates to injury or property damage whilst you are on the job and products liability relates to injury or damage caused with any products you manufacture, supply and distribute.

These types of liability insurance have become increasingly popular particularly in small sized businesses. As a matter of fact, small sized businesses are taking full advantage of online public and products liability insurance.