Product Liability Insurance

If your business manufactures or sells something, then product liability insurance is essential.

Designed to work as part of your public liability cover, product liability insurance protects you and your business against legal claims of injury to customers or damage to property that could be related to a product you have designed, manufactured, produced, repaired – or even just supplied.

Product Liability Insurance explained

Product liability insurance protects your business should a customer suffer damages as a result of a fault with a product you have supplied. This includes the design, sales, import and even repair of a product – you don’t have manufacture an item to have a need for product liability insurance.

Your business will need product liability insurance if:

  • You sell a product with your brand or name on it
  • Your business repairs or re-purposes a product
  • You manufacture a product
  • You import products from outside of the EU for sale in the UK

Furthermore, if the original manufacturer of a product you sell or use components from has gone out of business, then as a seller of the product, you could be held liable for damage caused by it.

Not all businesses will need product liability insurance. As an example, companies that purely offer training or consultancy that provide a service rather than a product would not need product liability cover.

Product liability insurance provides financial protection against a compensation claim and associated costs. Claims can be made for loss, damage or injury at any time within three years of using the product – and sometimes even longer.

Product Liability Insurance questions

Any business that is involved in the manufacture, repairs, designs or distributes a product for a company that is no longer trading needs public liability insurance. If your company name or brand appears on an item, then you could be held responsible for any damage or injury caused by that product.

Examples of product liability claims:

  • Design defect: Claims that stem from the actual, intended design of the product being faulty, unreliable or dangerous.
  • Production or manufacturing defect: This type of claim alleges that a flaw occurred during the production or manufacturing process of a product that caused the particular item to become unreliable or unsafe. Even small mistakes during the production process could give rise to claims.
  • Insufficient information: A product liability claim can also be made against your business if it is alleged that you did not provide the customer/user with the necessary instructions or warnings or the potential risks involved in using the product.

If you would like to discuss your liability insurance arrangements, get in touch with our friendly team of experts.

Insurance solutions to suit your business

Product liability cover can usually be added to your public liability insurance and will form a part of the overall insurance solutions you need to protect your business.

From start-ups to companies with a global presence, we will tailor an insurance package to suit your needs.

Our approach is to get to know you and your business and help you identify your specific insurance risks. We’ll assess and then provide solutions to meet your requirements. We’re here to help as your business grows and changes and adapt your cover accordingly.

We like to talk to our clients in whichever way suits you – whether it be face to face, via web-meeting or on the telephone.

To find out how we can help your business, speak to our friendly team of experts.