Product Liability
Do you need product liability insurance?
Do you supply goods for export? Then you might need to consider
whether your product could cause damage to a third party, either
another person or a particular piece of property. This type of risk is
covered by what's called product liability insurance.
If you already have this insurance, you should check and make sure
that your policy covers you for claims that are made outside of the
UK. Many policies are restrictive in that they only apply to certain
areas.
What you'll need to cover...
You'll need a policy provides protection for:
-
Safety claims
-
Defects caused during the manufacturing process
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Costs incurred from spoilage
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Costs associated with your legal defence
-
Medical costs
Contact a broker who specializes in these areas to get advice on what
the best policy for your business is.
Avoid poor quality products and services
You should note that product liability insurance does not cover you
for claims that arise in the event that you supply poor quality
products or services. For this reason, introduce a system of rigorous
quality control and check that your products meet certain standards;
it is your responsibility to produce quality goods or services to your
customers. For more information, check our guides on liability
insurance and quality management standards.
Minimising policy costs
Putting a rigorous quality control system in place helps ensure that
your products are safe and meet the standards necessary to your
industry. This will also cut your premium costs. By ensuring that you
have good quality control, you demonstrate that you take
responsibility for your business and your products or services. Of
course, having an insurance policy in place similarly shows that you
are a responsible business owner.
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