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What is Product Liability Insurance?
Product Liability Insurance can protect a company from financial loss if a product causes any injury, illness or damage to property or possessions. For example, if your business is unfortunate enough to sell an appliance that catches fire when a customer uses it, or supply some sports equipment that has been manufactured with a design flaw that leads to injury, you’d want to have taken out a product liability insurance policy. 

Product Liability Insurance typically covers legal fees, court costs and compensation payouts, whether from design defects, manufacturing issues or a product being provided with inadequate instructions or warnings. Without product liability insurance, any legal costs, compensation and/or damage to a company’s reputation, could be devastating if any unfortunate incident were to occur. 

How do I buy Product Liability Insurance? 
Product Liability Insurance can only be purchased as an extension to Public Liability Insurance, which Prizm Solutions can help with.  

Who should buy Product Liability Insurance?
Product liability isn’t just for manufacturers. Wholesalers, distributors and retailers can also be held responsible for any product issues, especially if the manufacturer is difficult to pursue legally. That’s why it’s essential to have coverage across the supply chain.

It's also worth noting that, under the Consumer Protection Act 1987, if you are importing goods from outside of the EU (and at the time of writing this blog, the latest statistics show that 49% of all UK goods come from outside the EU) then you are deemed by law to be the producer/manufacturer of those goods and your insurance program needs to reflect that.

Not sure if you need Product Liability Insurance?
Product Liability Insurance isn’t just for big businesses, as small companies can also face product liability claims.  

If you’re unsure whether you need Product Liability insurance, just give the friendly team at Prizm Solutions a call.  We’ll assess your business situation and recommend a way forward, by asking questions about the types of products being handled, the markets being sold to (whether UK or International) and information about any potential known risks associated with product use. We’ll also ask about a company’s turnover and past claims history.

As well as helping with Product Liability Insurance, Prizm Solutions can also help with Product Recall Insurance, Retailers Insurance and many other business and personal insurances.