Products liability insurance

Products liability insurance covers a builder’s legal liability for bodily injury or property damage to third parties that arises from completed work after it has been handed over to the client. Where public liability covers incidents that happen while construction is in progress, products liability covers incidents that happen after the project is finished and the keys are handed over.

For residential builders, the exposure is ongoing: a completed deck that collapses two years later, or a structural element that fails post-handover, can produce a products liability claim. An annual combined public and products liability policy covers both in-progress and completed works continuously. A project-specific public liability policy without a products liability extension leaves the builder uninsured once the project is handed over.

Also known as: Product liability insurance.

Category: Insurance

Related

• Public liability insurance for builders

See also

• Construction works insurance for Australian builders
• Defects liability period
• Practical completion

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Last updated: 2026-05-10. Verified: 2026-05-10. Quarterly review for currency.