Product Liability Insurance protects those company’s that make, design or sell products on either a business to business or business to consumer basis. Whilst this type of insurance isn’t a legal requirement it is one that you might want to consider.
If you are sued and found liable for damage, injury or even death as a result of one of your products then Product Liability Insurance can protect you financially and cover the cost of compensation.
I don’t manufacture products, am I still at risk?
Well yes, you could be. If the products display your business name, they are based outside the EU (this may change post-Brexit), the manufacturer cannot be traced or you refurbish or repair products then you could still be deemed liable.
With regards to whether you need cover, that’s something you may decide upon dependent on the products involved, we can offer advice but in the end the decision is yours.
Product Liability Insurance will not only give you peace of mind by adding you that extra protection, but it will also help relieve stress and pressure on the business should a situation arise where you need to claim. These kinds of legal cases can demand large compensation packages and that could easily have a large impact on a business, if not take it under completely.
Do I need a separate Product Liability Insurance Policy?
Product Liability Insurance is usually sold as an add-on to an existing Public Liability Insurance Policy, this is a more cost-effective way of taking out this type of insurances. This will typically cover you for claims for compensation that are between £1 million and £ 5 million. The amount will often depend on the type of product involved.
If you are unsure as to whether Product Liability Insurance is right for you, please do get in touch and one of our team will discuss the options with you. We offer independent no obligation advice and will only ever advise you take out insurances that you either need from a legal standpoint, or those that are right for you and your needs. We can help you weigh up the risks involved in your business and use our experience and expertise to come up with the best Product Liability Insurance solution for you.
