If you sell products in the UK, public product liability insurance cover can be vital to ensure peace
of mind in the successful operation of your business.
Performance Direct for Business is one of the UK's fastest growing commercial insurance brokers with a team dedicated
to providing the best quotes of all types of products liability insurance for all kinds of products in the UK.
In terms of product liability insurance, a product means any physical item that is either sold or given away to individual
customers or businesses.
By law, your products must be 'fit for purpose' or, in other words, they must do the job they are meant to! And, by
law, you, or your business are responsible for any damage or injury that a product you supply may cause to the user.
Business Link provides an excellent overview of business product liability cover in the UK and they highlight the important
points for all businesses that, if they supply a faulty product – even if they did not manufacture it – claimants may
still try to claim from them first. Not the original manufacturer. In fact, you'll still be liable for compensation
claims, and the first in line for a claim, if:
- Your business name or brand is displayed on the product itself.
- Your business repairs, refurbishes or replaces the product.
- You imported the product from outside the European Union (EU).
- You cannot clearly identify the original manufacturer of the item.
- The original manufacturer of the product has ceased trading.
In addition, to avoid product liability insurance claims your business must be able to:
Show that the products were faulty when they were originally supplied to you.
Show that you gave your consumers adequate safety instructions and warnings about the misuse of the products and that
you included details regarding the return of faulty goods to the manufacturer in any contract your business issued
to the consumer.
You must also make sure that your supply contract with the manufacturer covers product safety, quality control and
product returns.
And finally, you must ensure you have good quality control and record-keeping systems in place.