Product Liability Insurance

Product liability insurance is intended to protect businesses who provide any type of product from claims if the product is faulty or causes injury or damage in some way. A minor defect in the product you supply could lead to significant claims, especially if it is widely distributed before the defect is discovered.

This insurance is most obviously meant for those companies who actually manufacture goods, but product liability could also affect any business who acts as a retailer or wholesaler for products made by someone else. Examples of when selling on goods can still leave you liable are when you make any changes or repairs to products, if you import goods from countries other than the EU or if the product carries your business name.

Retailers and wholesalers will not normally be held responsible for faulty goods, but you may need to be able to prove that the product was already faulty when you received it from the manufacturer. If the original manufacturer has gone out of business or cannot be traced, then it is possible that the buck may stop with the business who sold the product.

So any business involved in the manufacture, repair or sale of products should have a product liability policy in place to guard against claims for personal injury or property damage due to faulty goods.