Product Liability Insurance. Easy.

What is Product Liability Insurance?

Product liability insurance is designed for businesses who are involved in the production, supply of sale of products to members of the public. It helps protect against claims of personal injury or property damage that a third party suffers (or claims to have suffered) as a result of your business’s product.

In real terms, this means that if someone suffers an injury, or their property is damaged due to a fault in a product you have sold them, they may take legal action against you or your business to recover their loss. Product liability insurance is designed to help protect your business, and depending on the policy you take out, may cover incidents that occur at your business premises, as well as incidents at other locations.

Product liability insurance only covers claims made by external parties, not those made by your own employees. If you sell or supply products to customers, it is important to protect your business against claims that could arise from these products. That’s why Product liability insurance is often included as part of the Public Liability policies we arrange.


Who needs Product Liability Insurance?

Product liability insurance is recommended for any business that is involved in the production, supply or sale of products. No matter what type of product that is, there’s always the potential for something to go wrong.

Claims of personal injury or property damage can be incredibly expensive. Even if you’re not at fault, you may still incur considerable legal costs while defending a claim.

Product liability insurance can help safeguard your business by providing cover against such claims, including legal defence costs. So you can confidently go about your work, knowing your business has a level of protection if something goes wrong.


Do I need Product Liability Insurance?

With Australia having been coined the second most litigious society in the world after the US, the importance of Product Liability insurance is undeniable. Nowadays, it’s very easy for people to access information about their legal rights, making businesses more susceptible to having claims of third party damage or injury brought against them. Whilst these sorts of incidents may seem rare, if they do happen, by the time you add up the cost of legal fees to defend yourself or your business, and any potential damages you must pay, the cost can easily run into the tens of thousands of dollars. This is why Product Liability Insurance is so crucial. It may not be mandatory for certain professions, but as a small business owner, you may not have that kind of cash lying around, so a potential product liability claim could seriously damage your business.

Why Aon?

Product Liability Insurance. Easy


Easy to Understand

  • Easy to digest information about insurances your business needs
  • Experienced, friendly brokers on 02 6190 0958

Easy to Buy

  • Quick quotes online
  • Purchase in just a few clicks
  • Pay monthly options available

Easy to Manage

  • Manage your renewals easily
  • Adjust your policy anytime
  • Request certificates of insurance quickly and easily
  • Assistance in complex claims

Why choose Aon for Product Liability Insurance?

Aon is committed to making life easier for small and medium business owners with insurance that’s easy to understand, buy and manage. If you’re a small business owner, your job is anything but small, so when it comes to protecting your business with the right cover, it helps to have an expert on your side.

You can compare covers and take out a policy online in just a few clicks. But if you need help, our team of friendly experienced brokers are a phone call away, so you can have confidence you’re making a better decision for you and your business.

What does Product Liability Insurance typically cover?

Legal Liability
Damages you’re legally responsible to pay, as decided by a court, as well as the other party’s costs, for damage to someone’s property and personal injury to a third party arising from products sold by your business.
Legal costs
Your legal costs are covered, subject to policy terms, even if a court decides you’re not responsible for the allegation.
FAQs

Frequently Asked Questions
Here are some questions commonly asked by clients.
Is Product Liability Insurance mandatory?
Product Liability Insurance may be a necessary requirement before licences for certain trades are issued. It is one of the most important insurance products needed by businesses. In our opinion, if your involves sale or supply of products, then Product liability insurance should be a cover to seriously consider. 
What is the difference between Product Liability and Public Liability?
Public liability insurance includes covers for your legal liability for property damage or personal injury caused directly by your business activities or on your business premises during the course of your work.
Product liability insurance includes cover for your legal liability for property damage or personal injury caused by products your business sells, supplies or produces. For example, if you operate a catering business, and the food you serve makes someone sick, you could be held liable to pay damages and the cost of their treatment.
What is the difference between Professional Indemnity insurance and Product Liability insurance?
Professional indemnity insurance is designed for professionals who provide advice or services, and helps protect your business in the event a third party alleges that such advice or services caused them financial loss. Product liability on the other hand, is designed for businesses involved in selling, supplying or producing products, and helps protect your business in the event a third party alleges that your products caused them personal injury or property damage.
Explore more FAQs

Do I need Product Liability insurance if I am self-employed?
The answer to this will depend on whether or not your business is involved in the production, supply or sale or products or physical goods. If your business function does involve this, then Product Liability should be a cover to consider.

Does Product liability insurance cover employees?
If an employee suffers an injury while working for your business, Product liability insurance will not provide any coverage for this. If your business employs staff or contractors, you will need to take out Workers’ Compensation to cover them. 

Is Product Liability Insurance tax-deductible?
According to the Australian Taxation Office, you may be able to claim the cost of any premiums you pay for insurance against the loss of your income. You should always speak to your accountant to check your eligibility to claim expenses.

I've taken out Business Insurance, do I need Product Lability Insurance as well?
Product liability insurance is usually offered as part of a Public Liability policy. Both Public and Product Liability can sometimes also be selected as part of a Business Insurance policy. However  all insurance policies are different, and you should check with your broker on what coverage is offered under the cover you hold.

What does Product Liability insurance not cover?
As with all types of insurance, there are certain common exclusions which apply under Product liability insurance. You should thoroughly read your Policy Wording and speak to your broker to understand them. Examples of standard exclusions may include claims relating to:

  • Punitive damages which a court decides to be paid on top of compensation
  • Damage to property you own or that is in your care, custody or control
  • A cyber attack experienced by your business     
  • Allegations of defamation brought against you
  • Liability arising out of asbestos or materials containing asbestos

I’m a tradie, can I arrange Product Liability Insurance through Aon?
If you’re a builder, tradie or subcontractor, Aon can arrange Product liability insurance as part of our joint venture with Housing Institute of Australia  – click here to visit the HIAIS website.

As a professional, what other types of insurance might I need?
If you are a small business owner operating a professional practice, there are a few types of insurance you may need. Consider your objectives and financial situation when deciding which policies you take out. Other types of insurances available to small business owners include:

  • Professional indemnity which helps protect you against claims made by clients alleging they suffered injury or financial loss due to a service you provided.
  • Business insurance which covers your business premises and contents against events such as fire, theft or other listed events. Product liability insurance can also be purchased as part of a business insurance policy.
  • Cyber insurance is also available for certain professions, which is designed to protect businesses from a range of internet based risks.

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