Public Liability Insurance
If members of the public or customers come to your premises or you go to theirs (including if you work from home), you should think about taking out public liability (PL) insurance.

What the insurance covers
Public Liability insurance covers any awards of damages given to a member of the public because of an injury or damage to their property caused by you or your business. It also covers any related legal fees, costs and expenses as well as costs of hospital treatment

Products Liability Insurance
In product liability insurance terms, a product is any physical item that is sold or given away. Products must be 'fit for purpose'. You're legally responsible for any damage or injury that a product you supply may cause.

Your responsibilities
If you supply a faulty product, claimants may try to claim from you first, even if you did not manufacture it. You'll be liable for compensation claims if:

• your business' name is on the product
• your business repairs, refurbishes or changes it
• you imported it from outside the European Union
• you cannot clearly identify the manufacturer
• the manufacturer has gone out of business

Otherwise, the manufacturer is liable - or the processor, where the product involves parts from multiple manufacturers.
However, you must also:

• show that the products were faulty when they were supplied to you
• show that you gave consumers adequate safety instructions and warnings about misuse
• show that you included terms for return of faulty goods to the manufacturer or processor in any sales contract you issued to the consumer
• make sure that your supply contract with the manufacturer or processor covers product safety, quality control and product returns
• have good quality control and record-keeping systems

What is covered
Product liability insurance covers you against damages awarded as a result of damage to property or personal injury caused by your product.