5 Things you must know about Products Liability Insurance

1.  Who needs Products Liability Insurance?

Any business that manufactures products.   Please note: Businesses that do not manufacture products but who sell products, can also consider Products Liability insurance. In this case, if the supplier is held accountable for damages caused by the product, their insurance will immediately pay the claimant, but will attempt to recover the amount from the manufacturer.

2.  Why should you take out Products Liability Insurance?

Unfortunately eventually everyone makes a mistake. If your mistake when manufacturing your product causes injury to your client or damage to their property, they will hold you responsible. Products Liability insurance costs a fraction of the price of paying large awards if your company is found negligent. Even if your company has not been negligent, the legal costs incurred in defending your company could cripple a business if not insured against. Taking products liabilty insurance is a frugal way to ensure that your business will survive even if you do make a mistake.

3.  How much does Products Liability Insurance cost?

We have a large book of clients with many different insurance companies, so we will be able to find the most beneficial policy with the cheapest premiums for your business.

4.  Typical claims incurred on Products Liability Insurance Policies

    • A wrong ingredient slipping into a food product.


    • A furniture article being incorrectly manufactured (for example a bunk bed).


    • An imported appliance being incorrectly assembled before retail.


  • A retailer being held accountable for a faulty product he sold, with the insurer paying the claimant immediately but attempting to recover the amount from the manufacturer.

5.  What other insurance should be considered along with Products Liability Insurance?

If your business provides advice, designs or consultation services or if your work involves lots of calculations or stringent procedures, Professional Indemnity insurance should be considered. For all you need to know about Products Liability Insurance, click here