Product Liability Insurance
Why do I Need Product Liability Insurance?
Product Liability Insurance is essential if you make or supply products to a 3rd party. If you are involved in making, repairing or supplying a product then you need to have insurance to cover any serious defects that might emerge. If a product that you have supplied was to be found faulty or defective, then you could be liable for any damage or injury to a third party or their property that arises from the use of product. You can still be held accountable if you weren’t aware of a problem and have never had an issue with that product before.
PLI is not a legal requirement and you do not need it in order to trade in most industries, yet government or other types of contracts may insist you have it before signing a contract to work with you. Not having Product Liability Insurance could delay future work that you may be bidding for, or take you out of the running completely and the work may be given to a competitor. Call our team now on 01246 575 625 to discuss your Product Liability Insurance requirements and get a range of quotes in minutes.
What Does Product Liability Insurance do?
Product Liability Insurance provides cover against any claims from customers or members of the public for injury to themselves or any damage to their property which was caused as a direct result of products manufactured, supplied or repaired by your business being faulty. For example, if you are a food manufacturer supplying meals to schools or hospitals and the wrong ingredients were used by accident in a batch this could leave you open to all kinds of risks from customers claiming for food poisoning to companies claiming for loss of income due to unsaleable goods.
A claim can also arise if a part you’ve supplied has caused further damage. If you supply mechanical parts to use for example in an engine and it breaks off into another part of the machine, you could be held accountable for not only replacing the faulty part, but repairing the subsequent damage too.
A Product Liability Policy will normally cover you for claims made regarding:
• Safety of the parts supplies
• Manufacturing quality
• Quality of service
• Indemnity costs
Indemnity costs typically include medical bills and repair work. These costs would normally have to be paid by the company and then reimbursed at a later date with proof of receipts and expenditure.
Why Compare Product Liability Insurance with Buckingham Insurance?
For almost 40 years, Buckingham Insurance has been providing businesses across Derbyshire and South Yorkshire with invaluable, trusted advice and service. We are a traditional broker with a heavy investment in staff training and leading technology, together with good old fashioned close relationships with both our Insurer partners and clients, we pride ourselves on competitively priced, quality cover backed up by first rate service.