Get product liability insurance from simple insurance solutions

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Product liability insurance is a type of commercial insurance that can cover the expense of compensation claims if someone is injured or their property is damaged as a result of a product you sold. In some cases, you may be held accountable even if you did not produce the product.

What does product liability insurance cover?

Product liability insurance can cover your legal bills and compensation if someone claims you for damage or injury. You are more likely to be held accountable if the items display your company’s name or if you renovated or repaired them. If the manufacturer cannot be located, has gone out of business, or is not in the nation, you may be held liable.

If your product causes someone harm or damage, the producer bears the majority of the blame. However, even if you do not produce the things you sell, you may be held accountable in a few scenarios.

Compensation payments might also include lost income due to damage or injury, as well as the replacement or repair of products in the event of property damage, thus they can be quite large. Product liability insurance can cover these costs, preventing your firm from being shattered in the event of a compensation claim.

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How much coverage do you need?

It is entirely up to you to determine how much coverage you require. It is simply because the company offers product liability insurance as part of its public liability insurance, which protects you from compensation claims for damage or injury caused by your company.

When determining how much this sort of insurance your company needs, consider the potential magnitude of a compensation claim if someone was injured or their property was destroyed by your products.

Check your client’s contracts to discover if a certain amount of public or product liability insurance is required. Also, keep in mind that compensation claims can be expensive since they might include replacement or repair expenses if the property is damaged, as well as lost income and medical costs if someone is injured. We provide product liability insurance as part of our public liability insurance to protect you from claims of injury caused by your business or the items you sell.

Is it necessary to get product liability insurance?

In the UK, product liability insurance is not required by law. However, you may find that your suppliers, manufacturers, merchants, or distributors require it. Furthermore, if you are determined to be accountable for damage, injury, or even death caused by one of your items, you may face legal consequences. According to UK law, the things you offer must be safe for customers to use. However, no matter how many covers you take, things may go wrong.

Despite the fact that product responsibility is not required under UK law. The amount you can sue for will be determined by the severity of the accident, and there is no maximum limit to the possible payment.

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Product liability insurance protects you from potential compensation payments as well as legal fees.

Who is liable for damage caused by a faulty product?

Manufacturers, producers, dealers, and retailers may be held accountable for harm, damage, or even death caused by their product’s component parts under the law. However, the person found accountable will depend on the facts of each individual instance.

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Whether you make handmade products at home, have your own factory or production facility in the UK to manufacture your own products, or import products from another country to resell here, investing in a product liability insurance policy may be a good idea to protect yourself against potentially costly liability claims.

This type of insurance coverage can assist you in paying costs like legal expenses and compensation pay-outs if a client claims to have incurred a financial loss as a result of one of your goods.

What is the goal of liability insurance?

Product liability insurance covers firms and traders from liability claims stemming from faulty products.

Whether you offer manufactured items, handcrafted goods, or food, the correct product liability insurance might protect you and your business if one of your consumers decides to sue you.

What is the primary difference between product liability and public liability insurance?

Product liability insurance is a subset of general liability insurance, although the coverage it offers varies greatly.

Public liability insurance covers the job you do or the services you offer, such as if someone is harmed in your workplace or their property is destroyed as a result of the work you conduct on their property.

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Product liability protects you against third-party property damage and harm caused by physical items or parts you sell or furnish.

Product liability insurance costs

It is practically hard to price insurance on a one-size-fits-all basis. It is governed by a number of factors, including your industry, the sort of products you manufacture, where you sell, supply, and manufacture these products, and the price of the commodities you produce.

However, the cost of the quotes is determined by a variety of additional criteria. The quantity of employees is one of the most important.

Other factors to consider are

  • The age of your business
  • Your sales and profit numbers (if applicable)
  • The working environment’s characteristics
  • Whether you have a secondary occupation or not
  • The quantity of insurance you require (the more coverage you want, the more expensive the policy will be).

Should you get public liability insurance?

Although product liability insurance is not required by law, firms in your supply chain may insist on it.

Food is an example of a product that, by law, must be safe for people to use.

Assume you run a restaurant; product liability insurance quotes may protect you if a consumer becomes ill after eating your cuisine. Food is a product that you sell as a source of money. If you are sued and do not have public and product liability insurance, the compensation and legal fees might bankrupt you.

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