Product Liability Insurance vs Public Liability Insurance: What’s the Difference?

Running a courier business is rewarding, but it also comes with its fair share of risks. From accidental injuries to damaged goods, unforeseen incidents can lead to significant financial losses. That’s why having the right insurance coverage is essential for protecting your business and livelihood.

With so many insurance options available, it’s important to understand which policies are relevant to your work as a courier. Public Liability Insurance and Product Liability Insurance are two key types of coverage, but they protect businesses in different ways. Here’s what you need to know.

What is public liability insurance?

Public Liability Insurance protects your business if someone gets hurt or has their property damaged because of your courier activities. Whether an incident happens while delivering a package, loading or unloading goods, or simply while interacting with customers, this insurance has you covered.

For example, if you accidentally knock over a customer’s expensive item while dropping off a parcel, Public Liability Insurance can help cover the cost of repairs or replacements. Likewise, if a customer trips over your equipment and injures themselves, this insurance can handle the claims made against your business.

What is product liability insurance?

Product Liability Insurance is for businesses that manufacture, sell, or distribute products. If a product you deliver is faulty and causes injury or property damage, this insurance helps cover claims.

For instance, if you deliver an electric scooter that turns out to be defective and causes an accident, Product Liability Insurance could cover the costs. While couriers don’t make products, you might still be affected if a claim is made against the goods you deliver.

What is the difference between public and product liability insurance?

While both Public Liability and Product Liability Insurance offer vital protection for businesses, they cover different types of risks. Understanding these differences can help you determine which coverage is right for your courier business—or whether you might need both.

What each insurance covers

• Public Liability Insurance covers claims made by third parties for injuries or property damage caused by your courier activities—whether at a customer’s premises, on the road, or during a delivery.
• Product Liability Insurance covers claims related to injuries or damage caused by a defective product that you have transported, delivered, or handled.

The types of incidents that are covered

• Public Liability Insurance A customer tripping over a package you left at their doorstep or accidentally scratching a parked car while maneuvering a delivery van.
• Product Liability Insurance would cover cases like a defective kitchen appliance starting a fire in a home or a broken part on a piece of exercise equipment causing injury to a user.

Who should have each type of insurance

• Public Liability Insurance is essential for couriers because you’re constantly interacting with customers, their properties, and other businesses. Whether you deliver to homes, offices, or warehouses, this insurance protects you if something goes wrong.
• Product Liability Insurance is usually not required for couriers, as you don’t manufacture or sell goods. However, if you also provide installation, assembly, or repackaging services, you may need this coverage to protect against product-related claims.

How claims impact businesses

• Public Liability Insurance helps shield your courier business from financial losses if an accident occurs during deliveries—covering legal fees, repairs, and compensation claims.
• Product Liability Insurance safeguards your business from financial consequences if a faulty product you delivered leads to injury or property damage.

Without the right insurance, a single claim could result in significant costs that might put your courier business at risk.

Can you combine public and product liability insurance?

For many businesses, bundling Public Liability and Product Liability Insurance is a smart way to cover all risks. While couriers mostly need Public Liability Insurance, if you handle goods in a way that could affect their condition (e.g., installing or assembling items), combining both policies could offer complete protection.
The good news is, many insurers offer bundled policies, which can simplify your coverage and reduce your overall premium compared to buying them separately. If your courier business involves more than just delivering parcels, it’s worth considering a combined policy.

The value of insurance brokers in securing the right coverage

Choosing the right liability insurance can be overwhelming, especially with so many options. That’s where insurance brokers come in. They’re experts in understanding business risks and can help you find the right coverage for your specific courier operations.
For example:

• If you operate as an independent courier, a broker might recommend Public Liability Insurance to cover accidents during deliveries.
• If you also offer assembly or installation services, they may suggest Product Liability Insurance to cover potential product-related issues.
• If you run a larger courier business with multiple vehicles, they might recommend bundling your liability coverage with Commercial Vehicle Insurance for complete protection.

Get the right protection for your courier business

Risks are a part of every business, but as a courier, you don’t have to handle them alone. GSK Insurance Brokers are here to help you navigate the ins and outs of Public Liability and Product Liability Insurance, ensuring your business is fully covered against unexpected claims.

Don’t leave your courier business exposed—contact us today, and let our expert team find the perfect policy for your needs.