What is product public liability insurance?
Many different types of business could potentially benefit from investing in product public liability insurance. If a business supplies or manufactures goods then these should always be ‘fit for purpose’. unfortunately, it goes without saying that these products run the risk of somehow causing damage to an outside agency.
This particular type of insurance covers any compensation costs or fees that may be incurred in situations where products associated with a business could cause injury to persons or damage to property.
Product public liability insurance would handle the fees and expenses incurred even where a product that has caused harm, is faulty or has not been directly manufactured on a business premises or by the business. Product liability insurance for small business purposes is essential; as aforementioned, even if a product has not been manufactured directly by a business, the business could be liable to pay compensation if they have sold it and it turns out to be a faulty or dangerous product.
Additionally, if a business has made changes to a product, has put their business name on a product, has repaired a product or has imported a product into the European Union, they can be held responsible for faults and would benefit from researching product liability.
UK product liability law, specifically the Consumer Protection Act of 1987, makes the process of pursuing a claim a lot simpler and therefore, a businesses’ product public liability insurance cover should be suitable and comprehensive.
Product liability: UK law
In the United Kingdom, consumers expect the highest quality for everything they purchase, from electrical items and technical machinery, to clothing and cosmetics. Consumers have every right to expect these products to are in good condition when they are purchased and serve the purpose that they were intended for completely, and without fault or danger. Unfortunately, however, incidents are unavoidable and indeed, they occur on a frequent basis.
As such, product public liability insurance law is important. According to the Consumer Protection Act, any consumer has the right to trigger a product liability claim against a product manufacturer if they can prove they have been caused personal injury as a direct result of product failure.
Examples of such injury could include, for example, scarring from untested cosmetic products, burns from faulty electrical goods or poisoning from factory-manufactured food items.
The particular types of product liability for small business consideration would include manufacturing or design claims, as well as claims regarding failure to recall or failure to provide adequate warnings to customers.
Manufacturing claims concern changes or faults in a product that occur during the process of manufacture, design claims are concerned with poor design of a product, warning claims include failure to display information or warnings about a dangerous item, and failure to recall claims are concerned with situations where a manufacturer realises an error and does not recall that item from sale.
The best policies will safeguard against all of these types of claim.
To find the best product liability insurance policy for your business, why not fill out the above form and let Companeo put you in touch with up to four approved suppliers, who match the requirements of your business exactly.
B2B infos
