Guide
Public and products liability insurance
Most Australian liability policies combine two covers in one: public liability for your activities, and products liability for the goods you make, supply or sell. Here’s what each part does and when you need the second one.
- How the combined policy works
- Who needs the products part
What is public and products liability insurance?
It’s one policy with two parts. Public liability covers your business if a member of the public is injured or has their property damaged during the course of your work. Products liability covers injury or damage caused by products you manufacture, distribute, supply or sell. Allianz, for example, combines the two under one cover with limits of $5 million, $10 million or $20 million.
Which part responds
| What happened | Which part |
|---|---|
| A customer trips over your extension lead | Public liability |
| A visitor slips on a floor you just mopped | Public liability |
| A heater you sold overheats and damages a home | Products liability |
| A café customer is made sick by food you served | Products liability, in most policies |
| A shelf you installed falls on a client’s TV | Public liability for the TV. Fixing the shelf isn’t covered. |
What’s usually covered, and what isn’t
Usually covered
- Injury or death of someone outside your business.
- Damage to property that isn’t yours.
- Legal costs of defending a covered claim.
- Products you make, supply or sell, under the products part.
Usually not covered
- Your employees’ injuries. Workers compensation.
- Product recall costs. A separate cover; ask a broker.
- Product guarantees or warranties. Allianz lists these as excluded.
- Fines and penalties. Excluded, along with punitive damages.
When you need standalone product liability
The products part of a combined policy suits businesses that sell products as a sideline, such as a café, a hairdresser selling retail lines or a tradie supplying parts. If you import, manufacture or wholesale products, or sell online at scale, insurers look at the products risk on its own. Our product liability page covers that, and a broker arranges it.
How to compare public and products liability
Public and products liability questions
Is products liability included in public liability?
In most Australian small business policies, yes. The policy is sold as public and products liability. Check the PDS, because some policies exclude certain products.
Do I need products liability if I don’t sell products?
If you only provide a service, the products part rarely responds, but it’s usually included anyway. Food, retail lines and parts you supply all count as products.
Does products liability cover a recall?
Not in the core cover. Recall costs are a separate cover, usually arranged through a broker.
What limit do I need?
Match it to your contracts, permits and lease. Limits are commonly $5 million, $10 million or $20 million.
Does it cover products I import?
An importer can be treated as the manufacturer for liability purposes, so insurers assess the risk separately. A broker arranges standalone product liability for importers.
Compare the covers
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Sources
Public and products liability