Public liability vs product liability: which policy pays
By the TRS broking team24 Oct 20265 min read
The short answerPublic liability pays when the business injures someone or damages their property through its activities or premises. Product liability pays when a product the business made, supplied or sold causes injury or damage after it has left the business’s hands. Many policies combine both.
Public liability: the business’s activities
A visitor slips in the showroom. A contractor damages a client's ceiling during installation. These arise from what the business does or the premises it occupies.
Product liability: what the business supplies
A heater supplied by a distributor overheats in a customer's home. A food product causes illness. These arise from the product after it has been supplied.
| Incident | Policy that responds |
|---|---|
| Customer trips in your office | Public liability |
| Your staff damage a client’s property on site | Public liability |
| A product you sold injures a buyer | Product liability |
| A component you made fails in another firm’s product | Product liability |
Want this checked against your own policies?Talk to a broker
What to check in the wording
Territorial and jurisdiction limits, especially exports to the United States and Canada; whether the limit is per occurrence or in the aggregate; and exclusions for contractual liability.
Frequently asked questions
Is public liability compulsory in Singapore?
Not by statute for most businesses, but landlords, main contractors and clients often require it by contract.
Related cover
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.