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PUBLIC LIABILITY COVER THAT PROTECTS YOUR BUSINESS
Why Public & Third-Party Liability Matters in Manufacturing
Engineering and manufacturing sites are busy environments: forklifts, pallets, racking, visitors, contractors, deliveries, loading bays, cutting and welding operations, chemicals, heavy plant and high voltage systems. Even with strong safety procedures, accidents can happen — and when they do, claims can be expensive, time-consuming and disruptive.
Public (third-party) liability insurance helps protect your business if a member of the public, visitor, customer, supplier or other third party alleges they suffered injury or property damage due to your operations. It typically covers legal defence costs and compensation you become legally liable to pay, subject to policy terms, exclusions and limits.
What Public & Third-Party Liability Insurance Can Cover
Public liability is designed to respond to third-party injury and property damage arising from your business activities — whether on your premises, at a customer site, during deliveries, or at exhibitions and trade events. For manufacturers, the line between “public liability” and “products liability” can be important, so we help you structure both correctly.
- Third-party injury – e.g., a visitor slips in a walkway, or a contractor is injured due to site hazards.
- Third-party property damage – e.g., damage caused during installation, maintenance or site visits.
- Legal defence costs – solicitor fees, investigation and defence of claims (subject to insurer panel and policy terms).
- Cross liabilities – where required for multiple insured entities/partners (subject to underwriting).
- Off-site work – installation, commissioning, servicing and visits to customer premises.
- Jury service / court attendance – some policies include limited expenses cover for directors/staff (varies by insurer).
- Worldwide work / travel – often extendable for non-US/Canada business trips (check territories carefully).
Public Liability vs Products Liability (Key Differences)
Manufacturers frequently need both. Public liability relates to accidents arising from your operations (premises / activities). Products liability relates to damage or injury caused by products you manufacture, supply or install after they have left your control. Many policies combine these into a single liability section, but it’s vital the cover matches how you trade.
Public & Third-Party Liability
- Accidents on your premises (visitors, drivers, suppliers)
- Incidents during installation/servicing activities
- Property damage caused during works or site visits
- Loading bay and delivery-related claims
- Demonstrations, exhibitions and trade shows (where included)
Products Liability
- Faulty components causing injury or damage after supply
- Electrical fire or malfunction allegations linked to your product
- Supply-chain claims from OEMs/distributors
- Export exposure (EU/worldwide/USA options)
- Product recall/rectification options (if arranged)
Common Public Liability Claims in Engineering & Manufacturing
Public liability claims can arise in many ways — and sometimes even when you feel you did everything right. Strong documentation, incident reporting and insurer-led claims handling can make a real difference.
Visitor Injury on Site
A customer or courier slips on a wet floor or trips over packaging in a walkway area. They allege injury and seek compensation for medical costs and loss of earnings.
- Third-party injury cover and legal defence
- CCTV and incident reporting are important
- Documented housekeeping helps defend claims
Damage During Installation / Servicing
Your engineer attends a customer site and accidentally damages equipment, wiring or property while installing machinery, commissioning, or servicing components.
- Third-party property damage cover
- Contractual terms can affect exposure
- Make sure “away work” is included
Loading Bay Incidents
A pallet falls during loading/unloading, causing injury or damaging a third party vehicle. These claims can involve multiple parties (hauliers, drivers, subcontractors) and can become complex quickly.
- Covers liability arising from your premises/operations
- Risk assessments and signage help reduce claims
- Insurers may ask about traffic management controls
Contractor / Visitor Allegations
A third-party contractor alleges that site conditions or instructions contributed to an accident. Even where you deny liability, the cost of investigating and defending the claim can be significant.
- Legal defence costs (subject to policy terms)
- Clear RAMS and site induction records are valuable
- Early notification to insurers is essential
Our site has regular supplier deliveries and customer visits. Insure24 arranged public liability cover that matched our operations and contract requirements.
Managing Director, UK Engineering ManufacturerChoosing the Right Public Liability Limit
Many engineering manufacturers choose limits such as £2m, £5m or £10m, but the right level depends on your contracts, customer requirements, footfall/visitors, site activities, off-site work and risk profile. Some customers (especially OEMs, main contractors or public sector clients) specify minimum limits in contracts.
Factors That Influence Limit Selection
- Customer and supplier contract requirements
- Number of visitors and frequency of site visits
- Type of manufacturing (heavy plant vs light assembly)
- Off-site installation/commissioning exposure
- Potential severity (e.g., high-voltage, hot works)
Common Extensions to Discuss
- Products liability (often combined)
- Worldwide territories / overseas visits (as needed)
- Bona fide subcontractors / labour-only work (where relevant)
- Heat work and welding activities disclosure
- Contractual liability review and indemnities
How to Get Public & Third-Party Liability Insurance
We keep the process simple while ensuring the policy reflects your real-world risk — so you’re protected when it matters.
- 1. Tell us your operations – manufacturing type, site activities, visitors, off-site work and turnover.
- 2. Confirm contracts – required limits and indemnities requested by customers.
- 3. Disclose key risk factors – heat work, height work, hazardous substances, site traffic controls.
- 4. Compare insurers – we approach markets suited to engineering/manufacturing risks.
- 5. Bind cover – documentation issued quickly with ongoing support for changes and renewals.
FREQUENTLY ASKED QUESTIONS
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What is public (third-party) liability insurance?
Public liability insurance helps protect your business if a third party (such as a visitor, customer,
supplier or member of the public) alleges injury or property damage due to your business activities.
It typically covers legal defence costs and compensation you are legally liable to pay, subject to
policy terms and exclusions.
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Do engineering manufacturers need public liability?
In most cases, yes. Manufacturing sites have visitors, deliveries, loading operations and sometimes
off-site installation or servicing. Public liability is a common contractual requirement and helps
protect against costly third-party claims.
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What’s the difference between public liability and products liability?
Public liability relates to third-party injury or property damage arising from your operations
(premises and activities). Products liability relates to injury or damage caused by products you
manufacture or supply after they have left your control. Manufacturers often require both.
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What limit of indemnity should I choose?
Many businesses select £2m, £5m or £10m, but the right limit depends on contracts, visitor numbers,
off-site work, and the potential severity of incidents. We can help you match your limit to customer
requirements and risk profile.
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Does public liability cover installation and servicing at customer sites?
It can, provided “away work” / off-site activities are included. Tell us what work you do off-site
(installation, commissioning, servicing, maintenance) so we can ensure the policy wording matches
your activities.
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Are subcontractors covered?
Some policies can include bona fide subcontractors or labour-only arrangements, but cover varies by
insurer. It’s important to explain how you use subcontractors so the insurer can confirm the correct
arrangement.
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How much does public liability insurance cost?
Costs depend on turnover, activities, claims history, risk controls, the chosen limit, and whether
products liability is included. We compare specialist markets to find competitive terms for
engineering and manufacturing risks.