What is product liability insurance and does my business need it?

When you supply the public with a product, it is important that you protect your business from harm that may arise from the use of your product. It is designed to ensure that should such a claim arise you are not held liable for the defence or legal costs that go hand in hand with such a claim. In a world where the customer is never wrong, we need to remember that even though you are not at fault, the costs to your company to prove just that can be vast.

Let’s pretend that your business produces and sells lawnmowers to the public. A customer injures himself and loses 2 of his fingers while fiddling underneath the lawnmower while it is still running. He approaches you and wants to take you to court with the claim that you did not install the correct safety features into the lawnmower to avoid personal injury. Your lawyer could easily argue negligence on the part of the customer considering that if you shove your fingers into an area where a spinning blade is present, you are bound to get hurt. This may seem obvious but it can still cost you a pretty penny to prove that in court. This is an ideal example of an instance where you could benefit from product liability cover.

Product liability cover can cover a wide range of products. It could be damage caused by software you supply, personal injury caused by equipment you supply or illness caused by food or drinks that you supply. As you can see, it is a requirement for any business that supplies products regardless of how “harmless” the product supplied may seem. It could save you a mountain of headaches in the future and provide you with the peace of mind that you can go about your daily business without the stress of what might come back to bite you.


Contact your APBCO Broker to discuss product liability cover for your business.


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