Public & Products Liability

Coverage under most public liability policies is provided for personal injury or property damage caused by the sudden and accidental discharge or release of pollutants.

Claims for personal injury or property damage arising from the gradual release over a continuous period of time including the costs of clean up and/or mitigation costs may be more appropriately insured under a specific Environmental Impairment Insurance policy.

No.  Such policies contemplate claims by parties other than anyone employed by or in the service of the Insured.  Protection for claims for bodily injury made by employees can be obtained under an Employers liability policy.

One of the areas that can improve the acceptability of risk for insurers is limitation of liability by contract.  If the client can demonstrate that they have restricted their liability contractually then this will generate benefits both for the insured in respect of premium savings and for the insurer in respect of any claim payment.  Insurers are particularly interested in whether hold harmless agreements have been entered into, or indemnities given to suppliers as these can ultimately have the effect of limiting the insurers right of recourse against other parties responsible for the loss. 

Where the proposer is a professional firm or consultancy, a copy of the proposers marketing literature, business profile and standard contract conditions for the provision of professional services is required.  Manufacturers, exporters and suppliers of products should provide similar information including a copy of standard conditions of sale and any agreements with distributors.

"Broadform“ is a generic term for a liability insurance policy originating in the United States and introduced into the New Zealand Market in the 1970’s.  Most specialist liability insurers in New Zealand provide coverage on this basis. 

If you have goods in your care, custody or control, then you are a bailee whether or not you receive payment for any service relating to the goods.  With or without payment you have a duty of care to return the goods to the owner in good order. In relation to liability insurance “Bailees Liability” most commonly refers to storage or warehousing businesses. If you damage third party property in your care you are liable to the owner.  Current case law suggests that the lack of payment for service does not confer a lesser duty of care.