You’re probably well aware that Public Liability protects you from physical and property damage.


So doesn’t Product Liability protect you from implementing a defective product into your customer?  Not exactly, and I have many customers who get shocked when I explain what it really means.


Product liability insurance only protects against claims of personal injury or property damage caused by products sold or supplied through your business.


So if your product, say an IT tool, gets implemented into your client and is defective, causing financial loss, then Products Liability will not help you… professional indemnity will.  As an example, you install a payments program into CBA.  There is a defect in your payments program and it causes CBA’s ATMs to go down for a day, causing a great deal of financial loss for the client.  Your protection will be professional indemnity and not products liability.


Watch out for more Insurance Mythbusters in our next blogs.

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