Products Liability Insurance

In product liability insurance terms, a product is any physical item that is sold or given away.

Products must be 'fit for purpose'. You're legally responsible for any damage or injury that a product you supply may cause.

Your responsibilities

If you supply a faulty product, claimants may try to claim from you first, even if you did not manufacture it. You'll be liable for compensation claims if:

• your business' name is on the product
• your business repairs, refurbishes or changes it
• you imported it from outside the European Union
• you cannot clearly identify the manufacturer
• the manufacturer has gone out of business

Otherwise, the manufacturer is liable - or the processor, where the product involves parts from multiple manufacturers.

However, you must also:

• show that the products were faulty when they were supplied to you
• show that you gave consumers adequate safety instructions and warnings about misuse
• show that you included terms for return of faulty goods to the manufacturer or processor in any sales contract you issued to the consumer
• make sure that your supply contract with the manufacturer or processor covers product safety, quality control and product returns
• have good quality control and record-keeping systems

If you need any further information, please contact us.