What Is It?

Products liability Insurance cover should be purchased by your business to ensure adequate protection against manufacturing, design defect or failure to warn exposures.  You have an obligation to ensure that the cover you purchase in adequate to protect your business.  < the Consumer Protection Act 1987 does require any businesses manufacturing or supplying goods to provide some form of product liability insurance to protect you from any damage claims resulting from use / handling of your products.

What does it cover?

Product liability – Legal Liability (and associated costs) in respect of injury to any person or loss of or damage to material property caused by any products supplied.  You should always ensure that your insurer knows what type of products you supply, and you should always inform them if your circumstances change, as this may affect your policy.

• Manufacturing defect. This type of cover is designed to protect against any loss caused as consequence of a defectively manufactured product.
  
• Design defect.  This type of cover is designed to protect against any loss caused as consequence of a poor design work, in some cases the entire project may need to be restarted thus causing financial insurable loss.
  
• Failure to warn, or "inadequate warning." This type of cover is designed to protect against any loss caused as consequence of a product believed to be potentially dangerous which was sold without a adequate  notices or warnings to the unsuspecting consumer.

Examples of Products Liability Insurance Claims

1. A bath tap which was built with a cracked fitting, which breaks when used, causing an injury to the unsuspecting consumer.
   
2. A piece of workshop plant is built without a the proper safety or protection devices, and as a result a worker is injured while using the machine.
   
3. An over-the-counter pack of head ache tablets sold lacking an important warning on the hazards of use with certain other drugs, excessive consumption, or possible side effects from its use.