Product liability has been the graveyard of many a business. Liability for damage or loss arising from the use of your products may continue long into the future, and the damages awarded have the potential to destroy a business. Liability can be the result of negligent design or manufacturing. The design of your product liability insurance package ought to be as good as the products themselves!
Manufacturers owe to customers and to the public at large a duty of care in respect of the safety and fitness for purpose of the products they make. They are under an obligation to describe them accurately and to supply clear and complete instructions covering their storage, handling and use. These are all likely grounds for dispute by aggrieved third parties, whether or not their claims eventually succeed.
Things You Should Consider When Buying Product Liability Insurance
Many managers believe that they run their operations so well that they run a negligible risk of suffering a product liability claim. In reality, though, many claims are not rejected before considerable legal wrangling. Defending such a claim can involve legal costs that often approach those of the claim itself. Your product liability insurance should cover the legal expenses of defending a claim, as well as the cost of any award, should the claim eventually succeed.
Product Liability is a complex field, and the law governing it is constantly developing. Businesses should protect their interests by having their operations audited by a product liability specialist. Periodic adjustments to their cover may be necessary to maintain adequate protection.
If you think your product liability cover may need updating, Sydney Insurance Brokers has an expert in this challenging field ready to take your call today.