Product Liability insurance

Do I need Product Liability insurance?

Where products cause injury or damage, legal battles can go far beyond between the consumer and seller. A ripple throughout the supply chain can make proceedings lengthy, complex, and costly. 

Sometimes claims will be justified, others spurious. Either way, they can end up costing you a lot of money. Unwarranted claims still need to be taken very seriously – your company’s reputation and brand value are under threat.   

Product liability insurance protects you from the resulting claims, covering your legal costs and compensation awards. A product liability policy is helpful for companies that make, supply, or sell products to members of the public.

Knowing that you are covered gives your people the freedom to innovate and the confidence to sell. 

What does Product Liability insurance cover?

Product liability insurance protects you if a customer claims that a product your company made, sold, or distributed caused them illness, bodily injury, or property damage. 

Injured customers may seek compensation through the courts. The main purpose of Product Liability insurance is to cover your legal costs and damages.

Your insurance can cover claims relating to faulty products, as long as you can prove that you had an adequate quality control process in place at the time of the incident. 

Common types of products we insure include: 

• Tools 
• Appliances 
• Toys 
• Clothing 
• Food and drinks