Public & Products Liability Insurance protects businesses against claims arising from injury to third parties or damage to their property as a result of business activities or products supplied. These claims can arise unexpectedly and may involve significant legal and compensation costs.

At Rivergum Insurance Brokers, we help businesses understand their liability exposures and arrange insurance that aligns with how they operate, what they supply, and the contractual obligations they agree to.

What Is Public & Products Liability Insurance?

Public & Products Liability Insurance provides cover if your business is held legally liable for:

• Personal injury to a third party, or

• Property damage to a third party’s property

arising from your business activities or products.

It is one of the most fundamental covers for most businesses, regardless of size or industry.

Public Liability vs Products Liability

Public Liability

Responds to incidents arising from your business operations, such as:

• A customer slipping and falling at your premises

• Injury to a member of the public during your work

• Damage to property while performing services

Products Liability

Responds to claims arising from products you supply, sell, manufacture or distribute, after they have left your control.

This may include:

• Manufacturing defects

• Faulty components

• Incorrect labelling or instructions

Products liability applies whether you are the manufacturer, importer, wholesaler or retailer.

What Public & Products Liability Typically Covers

Cover varies by policy, but commonly includes:

Compensation & Damages

Amounts you are legally required to pay as compensation to third parties.

Legal Defence Costs

Legal costs associated with defending a claim, often in addition to the policy limit (policy dependent).

Claims Worldwide

Some policies provide worldwide cover, subject to jurisdictional limits and exclusions.

Common Liability Risk Exposures

Public & Products Liability claims can arise from:

• On-site accidents

• Off-site work

• Faulty products or components

• Completed operations

• Installation or servicing work

• Third-party property damage

Optional Extensions & Enhancements

Public & Products Liability policies can often be extended to address additional exposures.

Errors & Omissions (E&O) Extension

E&O extensions may respond to limited financial loss arising from errors or omissions in services that do not involve bodily injury or property damage.

This extension is often relevant for:

• Trades providing installation or servicing

• Minor design or specification work

• Service-based businesses

E&O under a liability policy is typically restricted and does not replace full Professional Indemnity Insurance.

Product Recall Insurance

Product recall is generally not included under standard liability policies.

Product recall insurance may cover:

• Costs to recall defective products

• Communication and notification expenses

• Disposal and replacement costs

• Regulatory requirements

This is particularly relevant for:

• Manufacturers

• Importers

• Food and beverage businesses

• Consumer product suppliers

Pollution Liability (Limited)

Some policies include limited sudden and accidental pollution cover, subject to strict conditions.

Contractual Insurance Requirements

Many businesses are required to meet specific insurance conditions under contracts with principals, landlords or clients.

Noting a Principal

Contracts often require:

• A principal, client or landlord to be noted or named on your policy

This typically provides them with:

• Recognition under the policy

• Protection for their vicarious liability arising from your work

The scope of cover depends on the policy wording and endorsement used.

Waiver of Subrogation

Some contracts require a waiver of subrogation, meaning:

• Your insurer agrees not to recover costs from the principal after paying a claim

This must be specifically endorsed and is not automatic.

Why Contract Review Matters

Contracts may also include:

• Broad indemnities

• Hold harmless clauses

• Fitness-for-purpose obligations

• Consequential loss provisions

These can create liabilities that fall outside standard policy cover if not reviewed and addressed.

What Public & Products Liability Does Not Cover

Common exclusions include:

• Professional advice (without E&O or PI cover)

• Defective workmanship (cost of redoing work)

• Product recall costs (unless insured separately)

• Contractual liabilities beyond common law

• Known risks or deliberate acts

Understanding these limitations is critical.

Why Align Insurance With Contracts?

A policy that meets minimum limits may still fail to respond if:

• Contract terms exceed policy scope

• Required endorsements are missing

• Activities are not properly disclosed

Why Arrange Liability Insurance Through Rivergum?

At Rivergum Insurance Brokers, we:

• Review your business activities and risk exposures

• Examine contractual insurance requirements

• Arrange endorsements such as principals and waivers

• Structure insurance programs for broad, practical protection

• Assist with claims and insurer negotiations

Our focus is on ensuring your insurance responds when contracts and claims collide.

Speak With Us

If you’d like to review your Public & Products Liability Insurance, or need assistance aligning cover with contractual requirements, we’re here to help.

Contact Rivergum Insurance Brokers to discuss your operations, contracts and insurance needs.