Product liability insurance

This sort of commercial combined insurance covers the expense of paying someone if your product causes an accident, illness, or property damage. Even if you did not make the goods, the individual may be able to sue you if you supplied or fixed it.

It varies from general liability insurance in that it covers claims made explicitly regarding the items you sell, rather than incidents that occur to customers at your office or during your employment. Another form of protection that is usually coupled with public liability insurance is professional indemnity insurance, which covers damages incurred by mistakes in providing advice.

What is covered under Product Liability insurance?

This sort of insurance protects the goods sold by your organization. This policy protects you and your organization in the four goods that cause a consumer to become ill or damage their property. It protects you against client claims, such as compensation expenses or legal expenditures, connected to the goods you sold to them.

This might be anything from the food you sell in your café that causes food poisoning or a simple toy you made that injures a child. It’s also possible that a washing machine you supplied caused flooding in a customer’s kitchen.

Is public liability insurance required?

If your firm produces, manufactures, or distributes items for a cost or for free, product liability insurance is recommended. Even if you did not create the product, you might be held accountable if it is faulty.

  • You might potentially face legal consequences if your company’s name appears on a product.
  • Your business repairs refurbish or replaces a product.
  • Your product is imported.
  • You are unable to locate the maker of the goods you are selling, or they have gone out of business.

It’s also important to remember that even the most secure products can fail. Personal injury claims may be quite expensive, so it’s better to be cautious and ensure you’re protected than to be sorry and worry about not having enough money to pay for compensation or legal expenses. You may be confident that if something goes wrong with one of your items, you are protected by this insurance.

How much does product liability insurance cost?

Product liability insurance may cost less than £10 per month if you operate a small business, but expect to spend more if you run a higher-risk firm. Caterers for major parties, for example, are more likely to cause illness than a one-person shop selling knitwear online (unless they accuse you of pulling the wool over their eyes).

Your risk exposure and, as a result, the cost of your premiums will be influenced by the following factors:

Products that are electrical, sharp, heavy, pharmaceutical, or perishable are more likely to cause injury, disease, or damage, whereas items that require complex maintenance are more likely to fail than simple ones.

The number of clients affected will be shown by revenue, which is the amount of money you generate from selling things.

Precautions for product safety – Having appropriate product safety safeguards in place may assist to minimise your premiums.

What does this insurance cover?

  • Product liability insurance protects you against the following claims:
  • Personal injury caused by your goods
  • Property damage or loss caused by your goods
  • Unforeseeable incidents, such as product faults missed by your company’s quality control system

If you sold a faulty product that you did not make, you should be protected if you can show the following:

  • The merchandise was faulty when it was shipped to you.
  • You supplied your consumers with proper product safety instructions.
  • You supplied instructions for returning damaged products to the producer with the package.
  • The supply contract with the manufacturer includes product safety, quality control, and refunds.
  • Your organization has effective quality control and record-keeping processes in place.

What may this insurance policy not cover?

Your product liability insurance may or may not cover certain items depending on the level you choose. These are some examples:

  • Items that are faulty due to poor craftsmanship
  • When a person or company has experienced financial damages as a result of your defective goods.

Be certain that your company is secure

If you create, produce, or provide items to your clients or consumers, public liability insurance is only one of many vital forms of business insurance to consider for your firm. With any sort of insurance, there is a lot to consider, including what amount of coverage would be most beneficial and what matches your business.

How can you get Product Liability insurance?

The most popular sort of product liability is offered as an add-on to your public liability insurance plan and provides the same degree of coverage.

To explore your alternatives, contact our staff or compare estimates online. Other than what is necessary to get public liability insurance, no more information is required.

You may also get comprehensive product liability insurance as a stand-alone product if you are the maker of the goods, albeit this is typically only acceptable for factory owners.

Simple insurance solutions provide product liability insurance

Simple Insurance Solutions is a market leader in the Product Liability Insurance industry, with a significant customer base that imports and produces items for a variety of consumer market sectors.

We realize how annoying it may be to have to wait for answers when you’re dealing with a legal dispute. We provide our customers with access to a 24-hour, seven-day-a-week legal hotline manned by professional solicitors.

  • You will get insurance quotes in a matter of minutes.
  • Our public liability insurance is extremely reasonably priced. When you buy insurance from us, there are no surprises. If you wish to amend or cancel a policy, there are no additional expenses.

Call us right away and we will set up a policy that meets your needs.

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