Product liability insurance protects against claims of personal injury or property damage caused by products sold or supplied through your business. This cover protects against any ensuing liability and subsequent court costs resulting from the defending claims against your business.
Industries most commonly requiring product liability insurance
- Car hire companies
- Builders and labourers
- Any business whose commerce is based on the buying, selling, renting or use of physical product
Product liability insurance covers the the following areas:
- Losses caused to client property during an official visit by your representative, as well as damages incurred while you are using it
- Damages caused by the use of your products and losses that the client suffers from within your premises due to any kind of negligence
- Accidents involving clients and associates due to the use of your products and services
Businesses and manufacturers owe to customers and the public at large a duty of care when it comes to the safety and fit for purpose of the products they make. They are under obligation to describe products accurately, as well as supply clear and complete instructions covering product storage, handling and use.
Factors to think about when buying product liability insurance
Many business owners and management are so confident in their operations that they run minimal risk of experiencing a product liability claim. In reality, however many claims do occur and are not rejected before considerable legal wrangling. Defending product claims can involve legal costs that often approach that of the claim itself. Product liability insurance cover should cover the legal expenses of defending a claim, as well as the cost of any award, should the claim be successful.
Product liability is a complex area, with the law governing it constantly developing. Businesses should protect their interests by having their operations audited by a product liability specialist. Periodic adjustments may be required to maintain adequate cover.
Contact Sydney Insurance Brokers to discuss your product liability insurance requirements.