Product Liability Insurance

What you need to know

What is Product Liability Insurance?
Product Liability Insurance covers a company’s liability for losses or injuries caused by a defect or malfunction of their product, and in some instances, a defective design or a failure to warn.

Who needs Product Liability Insurance?
If you manufacture or supply goods, there’s always a possibility that your product could cause damage to a person or property.  A small defect can open the door to massive claims.  Product Liability Insurance is critical for product manufacturers, sellers or anyone who puts their name or mark on the product – they have a legal responsibility for any damage or injury a product may cause.

Anyone who repairs, reconditions, supplies or imports products is also at risk of product liability claims in case of product failure.  Resellers, wholesalers and retailers are deemed to be the manufacturer under the Trade Practices Act.

The Winley Insurance Group solution
To understand the need for this coverage it is critical to understand the potential liability.  Generally, a company can face three types of product claims:

• Manufacturing or production flaw - When a part of the production process creates an unreasonably unsafe defect in the resulting product.
• Design defect - When the design of the product is inherently unsafe.
• Defective warning or instruction - When the product is not properly labelled or has insufficient warnings for the consumer to understand the risk.

The damages awarded in these claims comprise of medical costs, compensatory damages, economic damages, and in some instances, solicitors' fees, costs and punitive damages.

Product Liability Insurance claims can and do put businesses out of business - just ask any of the officers from any asbestos manufacturer.

If your company provides a product to the consuming public, then your company needs Product Liability Insurance or completed-operations insurance.  Let Winley Insurance Group help ensure that your Product Liability Insurance cover amount is sufficient to protect you in the case of serious product damage or injury.