What’s the difference between Public and Product Liability insurance?

Every business faces risks, whether you’re a tradie, café owner, or market stall operator. That’s where Public and Product Liability insurance come in. Together, they help protect your business if your work or products cause injury or property damage to someone else.

Both Public and Product Liability insurance are designed to protect your business from third-party claims, but the difference lies in the type of risks they cover.

Public Liability applies when someone is injured, or their property is damaged because of your business activities. Product Liability applies when a product you sell, supply, or manufacture causes harm or loss. In short, Public Liability covers what happens because of your work, and Product Liability covers what happens because of your products.

Here’s a more detailed breakdown to help you understand how both types of insurance can safeguard your business from unexpected claims.

What is Public Liability insurance*?

Public Liability insurance helps protect your business if a customer, supplier, or member of the public is injured or their property is damaged as a result of your business activities.

As a business owner, you’re responsible for maintaining a safe environment for anyone who visits your premises or interacts with your work. But even with the best precautions, accidents can still happen.

For example, a customer might trip over stock left in an aisle, you could spill coffee on a client’s laptop during a meeting, or a supplier might fall on your premises and get injured. In these cases, Public Liability insurance can help cover the cost of compensation and legal fees arising from those claims.

What is Product Liability insurance*?

Product Liability insurance can help protect your business if a product you sell, supply, or manufacture causes injury or property damage to someone else. It’s usually included as part of a Public Liability policy, though coverage and definitions may differ between insurers.

This cover is particularly relevant for manufacturers, food and beverage operators, beauty salons, and market stall sellers. Claims can stem from a manufacturing fault, a packaging issue, or a design defect that leads to injury or damage. Having the right cover helps protect your business from costly claims and reputation damage.

Did you know?

Even if you import components that may be manufactured overseas to help create your products, you have a responsibility if there is an issue with those components? This responsibility is outlined under the Australian Consumer Law Act.

Getting your Public and Product Liability insurance sorted

No matter if you’re a candle maker or coffee shop owner, getting your Public and Product Liability insurance is drama-free with BizCover.

We provide multiple quotes from some of Australia’s most trusted insurers in minutes, so you can select the cover that will suit your business. No paperwork, no jargon, just insurance made easy. Get your quote today.