Product Liability Insurance

This section provides answers to the following questions:-

Why is Product Liability Insurance Needed?
What Cover does a Product Liability Insurance Policy Provide?
How much Product Liability Cover will my Business Need?
Compare Product Liability Insurance Quotes Now

Why is Product Liability Insurance Needed?

If you are involved in producing a product then you should consider having insurance to cover any serious defects that might emerge. We live in a very litigious society, and failure to take this precaution could see your business facing a claim for significant damages on its own.

If you make, repair or sell products, you could be held legally liable for damage or injury arising from defects in their design or manufacture even if you have not been negligent.

Product Liability insurance covers you in these circumstances up to a maximum amount each year.

In addition to the above, and despite the fact that Product Liability insurance is not compulsory in most industries, government or other types of contracts may insist you have it.

What Cover does a Product Liability Insurance Policy Provide?

Product Liability insurance covers you against claims by people (other than employees) for bodily injury and damage to their property caused by products manufactured, supplied or repaired by your business. For example, a motor manufacturer will be held liable if a faulty braking design leads to motor accidents.

Even where your business is not negligent, it may still be held liable for damages and injuries suffered as a result of using its products.

A Product Liability policy will normally cover you for claims made regarding safety or manufacturing quality or quality of service, spoilage, and indemnity costs, which include things like medical bills.

How Much Product Liability cover will My Business Need?

This is a fairly specialist area of the insurance market, and it can be expensive, but the costs of defending your company in court will almost certainly be greater. In the event of a case going against you, the damages could run into millions.

Precisely how much you should cover your business for is up to you. Naturally you will be looking at large sums, and it is unlikely that you will find Product Liability part of another policy.

It is important to remember that Product Liability is not designed to cover you if you simply make an inferior product or supply bad services. You will not be able to claim for this. Similarly, having this insurance does not relieve you from the responsibility of taking statutory due care in your business operations, and your insurer may require you to observe certain standards such as the use of trained staff and proper equipment and so on.

Compare Product Liability Insurance Quotes Now

Product Liability Policies will shortly be available here at Coverzones.

Coverzones is a specialist service for UK small businesses. Our free, online service allows you to compare up to 6 highly competitive small business insurance quotes for over 700 trades through our partnerships with the UK's leading providers. As an online service we've cut out all unnecessary costs and pass all the savings benefits back to you and your business.

The Coverzones free online quotation service is quick and simple to use. It takes seconds to open a free MyCoverzones account where you are able to buy, amend, renew, cancel or commence a claim on a policy, any time you choose.