A wide variety of different products are made available to the public each year and there is much legislation which seeks to these ensure products are safe and fit for purpose. At the end of the day it is the businesses who make products available to the public, who are responsible if they are faulty or defective.
Product Liability Insurance is designed to protect the end user of a product by giving businesses the ability to quickly provide compensation if a product is defective. Though product liability largely relates to manufacturing firms, your business could be held liable for a faulty product wherever you fall into a distribution chain. It may be important to have product liability in place if you are a:
Business making products available to the public.
Manufacturer or retailer who supplies its own-branded products.
Business that repairs, alters or services an existing product.
Company who repurposes or rebrands an existing product.
Importer of products from places where the safety requirements differ from the country it is sold in.
We provide product liability cover as an extension of business insurance or another liability policy. Because it’s different for every business, we do not have set cover; we tailor a policy to suit you. If you are looking for public liability insurance, a Towergate policy will always offer product liability as part of the cover.
As a specialist broker we can work with you to understand your products and the markets you operate in. This will help you to decide the correct level of cover for your business, and combine it with the rest of your package.
To discuss the needs of your business, speak to one of our helpful team.
Prefer to spread the cost of your policy?
Paying by direct debit is an affordable and convenient way to pay for your policy. Through our preferred provider, Premium Credit Limited (PCL)*, you have the option of setting up a Direct Debit to pay your premium in equal monthly instalments.
To find out more about PCL and direct debit payments, select Direct Debit.
*To understand more about how PCL work together with Towergate, please read our Regulatory Information.
Because our policies are bespoke to your profession, exclusions may vary. This list does not provide all exclusions that exist so it’s worth checking out our policy wording for an extensive list.
Excludes liability arising from work in or on aircraft/watercraft, or at airports or aerodromes in areas with aircraft access
Asbestos
Bodily injury to an employed person (our employer’s liability policy can cover this for you)
Damage to property owned or in your custody and control
Liquidated damages, fines and penalties
Pollution and contamination unless pollution or contamination is sudden or unforeseen
If you are still unsure just give us a call.
No, product liability traditionally applies to products in the form of tangible personal property; professional indemnity applies to the provision of intangible services such as advice.
Your business could face legal action if it does not comply with product safety laws. It’s not just the person who purchases the product that can sue, it’s any person who is injured, killed or has property damaged by the product that would have a right to compensation. If a consumer sues your business they can claim compensation for injury or death, costs of caring for an injured person, loss of earnings, damaged property and expenses.
Though product liability largely relates to producers, your business could be held liable for a faulty product even if you are only the distributor. Whether you are a manufacturer, supplier, distributor or retailer; if your business makes products available to the public, you may be liable for any injury or damage they cause. It’s therefore important to have the right insurance in place.
Below are some instances where product liability may still be the businesses responsibility even though they are not the manufacturer:
If you’re unsure if product liability insurance is something your business needs, just ask the team. We can identify whether your business requires the cover then find the most suitable insurance solution for you. What does ‘strict liability’ mean? It must be established what the cause of the defect is. It may not be due to negligence, or, a fault that could have been noticed in the quality control process. Strict liability means that you can still be held liable for the damage or harm caused by the product, even if there is no evidence of negligence.
It must be established what the cause of the defect is. It may not be due to negligence, or, a fault that could have been noticed in the quality control process. Strict liability means that you can still be held liable for the damage or harm caused by the product, even if there is no evidence of negligence.
Due to the bespoke nature of our liability policies, we have different claims teams depending on the type of policy you have with us. We will let you know the best way to contact us when you take up your policy and it can also be found on the policy documents we send out to you.
If you cannot find your policy documents and you need to make a claim, please call our customer service team for assistance on 0344 346 0409.