Product liability insurance
If you supply products to the general public you have a responsibility to make sure that they are safe. The heaviest burden of responsibility lies with the manufacturer of the goods, but retailers and wholesalers that distribute the products also have legal responsibilities. Primarily you have to make sure that your goods are safe - if you fail to do so, you can end up facing legal action. You can even find yourself being sued by anyone who has been injured or had their property damaged by your goods.
Health and safety law
Many goods are regulated by health and safety and product safety laws. If you are manufacturing or selling any goods, it is vital that you ensure that you are complying with these laws. For instance, furniture manufacturers may find their products fall under The Furniture and Furnishings (Fire) (Safety) Regulations 1988. Other goods may fall under International Standards Organisation (ISO) rules.
The Business Link website provides detailed information on product liability including the main regulations, how to work out your liability and what to do should anyone decide to sue you should they be harmed by a product.
People can sue for compensation for death or injury. They can also sue for damage or loss of private property of at least £275 in value (correct in March 2008). The amount they can claim will depend on the harm they have suffered. There is no fixed upper limit.
While you may take every precaution to ensure that your goods meet the necessary safety standards, it is possible that someone or their property may be injured or damaged by your products. It is, therefore, highly recommended that you take out product liability insurance to protect you should a claim be made against you. And if you do this through Direct Line for Business then you can rest assured that you have the right protection.
We offer a range of business insurance policies, and our Tradesman, Shop, Home Business, Hotel, Office and Surgery and Licensed Trade policies offer up to £2m-worth of product liability cover depending on the policy. You can also increase the level of cover if you need to.
Use this website to find out more about our range of business insurance policies, exactly what they cover and the level of product liability offered. You can get an online business insurance quote in minutes for any of policies.
Related information:
Public liability insurance - this covers you if a member of the public is injured or their property damaged by you, one of your employees or any of your business activities.
Employers' liability insurance - this cover is mandatory if your business employs staff.
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