General liability insurance

This insurance provides protection for the damage sustained by a third party resulted from the company’s business activity or bad quality product.

General liability insurance is divided into:

1. Public liability insurance;
2. Product liability insurance.

Public liability insurance

Public liability insurance covers the liability of companies for the damage caused to third parties. The public liability insurance compensates damage to the health, life, property or the environment of third parties caused by legal entities and the natural persons having a business certificate.

Depending on the insurance company providing public liability insurance of the selected activity, the insurance objects are usually monetary interests:

• public liability of the company for the damage caused to a third party during the activities of the insured company;
• public liability of the company for the damage caused to a third party for the usage of premises, structures, territory or other objects during the activities of the insured company.

Product liability insurance

Product liability insurance covers the company’s liability for the inappropriate quality of product provided by the company. Responsibility for the product being sold or manufactured is obligatory for manufacturers and service providers.

Product liability insurance as well as public liability insurance indemnify for damage caused to third parties by the product you manufacture or sell. Insurance companies provide insurance protection to third parties for the damage to their health, life, property or the environment caused by your product or services.  

The most commonly mentioned third-party damage to health arises from:

• inappropriate quality food products;
• inappropriate quality clothing.

Advantages of product liability insurance

Product liability insurance is made for businesses or individuals with a business license. In the course of commercial activity, inevitably there are third parties – customers, consumers, interested parties whose partial protection is guaranteed by the product liability insurance. All companies engaged in manufacturing, services, trade and other commercial activities are insured. In many cases, insurance companies provide the opportunity to insure the civil liability arising from the withdrawal of the product sold or manufactured by the insured from the market.