Product Liability Insurance

1. What is Product Liability Insurance, and how do I know if my business needs it?

Product Liability Insurance protects businesses from financial losses if a product they manufacture, distribute, sell, or import causes injury or damage to someone’s property.

If your business is involved in manufacturing, distributing, selling, or importing products, you should consider Product Liability Insurance. 

2. What types of claims does Product Liability Insurance cover?
A: Product Liability Insurance typically covers:

• Manufacturing Defects: Claims arising from mistakes in production that make a product unsafe.
• Design Defects: Issues where the product design is inherently dangerous or flawed.
• Marketing Defects: Failure to provide adequate instructions, warnings, or labeling, which leads to misuse and harm.

3. What’s the difference between Public Liability, Product Liability, and Professional Indemnity Insurance, and which one does my business need?

Each type covers different risks, so the right choice depends on your business activities and the potential liabilities you face. Here is a quick breakdown of each type:

Public Liability Insurance: This covers claims if someone is injured or their property is damaged due to your business activities. Essential for businesses that interact with clients or the public, like retail, hospitality, and construction.

 
Example: A customer slips and falls in your store — Public Liability Insurance covers their medical expenses and any legal fees if they file a claim.

Product Liability Insurance: Protects against claims arising from injuries or damages caused by products you manufacture, supply, or sell. Important for businesses dealing with physical products, such as manufacturers or retailers.

Example: If a product you sold malfunctions and causes harm, Product Liability Insurance covers related legal and compensation costs.

Professional Indemnity Insurance: Covers claims of negligence, mistakes, or advice that causes financial loss to clients. Ideal for businesses offering professional advice or services, such as consultants, architects, or accountants.

Example: If a client claims your advice caused them financial loss, Professional Indemnity Insurance helps cover legal costs and any compensation awarded.