What is Product Liability Insurance?

If your products are made available to the public, you may want to get insured for this in case anything goes wrong. At TechRound, we can put you in touch with a number of brilliant policy providers. Just get in touch with us at david@tudorlodgeconsultants.com

If you are a business and the products which you make and create are available to the public, then you will be considered ultimately responsible for them and with that, any damage or injury which they may cause. As such, it is vital that you have product liability insurance to cover you in the event that one of your products causes damage to an individual or property.

In the event that one of your products is unsafe or defected, the customer will rightly be able right claim compensation. Therefore, having this protection in place can save you thousands of pounds in legal costs and damages.

Products Liability Insurance Quotes

When looking for a provider, your quote will be dependent on them and their policy. Lenders will assess the cost of your product liability insurance and how much cover you will need. They will consider the size of a business, the level of risk which is associated with the products you offer and history of claims as part of this.

Products Liability Insurance Explained

If your business is in anyway involved with selling a product, whether you manufacture, import or change parts of it, you are going to be ultimately liable for any potential damages caused to the customer. You can never guarantee that all your products which are produced on a mass scale can be devoid of defects. Therefore, you will want to protect your business and its interest from any potential lawsuits.

Companies which do not have this in place seriously risk their own business. If a customer is to claim based on a faulty product or if they believe that the product does not meet safety regulation standards, the producer and sellers could incur large legal and compensation fees in order to resolve the matter.

What is covered with Products Liability insurance?

A products liability insurance policy will cover compensation and legal fees associated with any injuries to third parties which are a direct result of your products. This includes individuals who have been directly impacted by your product or any property damaged as a result of your business activity.

It will also be there to cover the wholesaler if the producer is no longer trading. If the manufacturer no longer exists, you simply do not want your company to be accountable. Similarly, your company can gain protection for products that may be of joint liability where two parties are involved. For example, a mechanic who uses faulty parts from different manufacturers or a handyman who uses defective tools made by an external company.

Advice for Products Liability

Manufacturers can actively work to limit the risk of their products causing damage to property or people by simply following the safety guidelines put in place by the government. These are as follows.

Monitor safety

Producers of products can follow up on complaints by improving their processes and making necessary changes to benefit the good of their products.

Safety Labels on Products

Companies need to understand what possible risks their products potentially hold. When these have come to be identified, they should place adequate warnings in the form of safety labels clearly on their products. Producers can provide information to the customer including ingredients and materials used in the manufacturing process.

Keeping track of safety standards

Companies can aim to stay up to date with the safety standards for their respective industries and co-operate with trading standards officers to maintain the highest level of safety when it comes to their product(s).

 

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