Public Liability Insurance covers you for actual or alleged negligence caused by you or your employees which results in bodily injury or property damage to a third party. Even if you are found to be not guilty in a court proceeding, your policy will still respond to cover your legal defence costs.
Products Liability Insurance covers you for actual or alleged bodily injury or property damage to a third party arising through use of a product sold, supplied, or manufactured by you. Even if you are found to be not guilty in a court proceeding, your policy will still respond to cover your legal defence costs.
An Arts Therapist runs small group Dance classes out of their studio. In an earlier class a client spilled some water on the floor from their water bottle and did not bring it to the Instructor’s attention. As the next group prepare for the class in the room, an elderly participant slips on the wet floor, causing the patient to fracture their hip. Action is taken by the patient against the Arts Therapist and it is found through investigation that the Arts Therapist was negligent as they should have checked the room for any hazards prior to the next class starting. They are found liable for the damages and their Public Liability policy responds to pay.
A Pilates Instructor sells electric heat pads to their clients to aid in recovery and stretching. The heat pads are imported directly from China. Due to a manufacturer fault in a batch received by the Pilates Instructor, the heat bags’ internal thermostat malfunctions and they receive a complaint by a patient of burns to their back and neck. Action is taken out against the Pilates Instructor for the supply of a faulty product and their Products Liability policy responds to defend them and pay any settlement due.