If My Bakery Makes Someone Sick Am I Covered?
In the event of customer of a bakery, cafe or restaurant getting sick with illness such as salmonella poisoning, where the illness creates a loss can the insured claim off their Public Liability Policy?
What is covered?
Public liability insurance protects you and your business against the financial risk of being found liable to a third party for death or injury, loss or damage of property or economic loss resulting from your negligence.
And Product Liability Insurance covers your business in the event that the product you sell, supply, repair or deliver causes death, personal injury or property damage. Product liability insurance covers you if any of these events happen to another business or person by the failure of your product or the product you are selling.
So in the event of food poisoning such loss might look like
- Loss of wages for clients with the poisoning
- Medical Expenses
- The injured parties legal fees*
*Legal Costs and Expenses cover is part and parcel of Liability insurance and defence costs are usually additional to the limit of liability. The Policy Limit of Liability is usually inclusive of Third Party Costs awarded against the Insured but this is not always the case, please check with your broker or insurer.
What if its not our fault?
Salmonella infection is a notifiable condition, and in the case of a business it's likely to be investigated by the local council.If it turns out one of your suppliers is guilty of negligence, you may have a good position for claiming off them and it may include loss or damage to your brand as a result.
Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs