What Does Product Liability Insurance Cover
A business is legally responsible for any damage or injury that a product causes. A business must ensure that its products are “fit for purpose” and are safe to be sold on the market. You may still be liable for a faulty product even if you haven’t manufactured it. You will liable for the product under the following circumstances: • your business’ name is on the product • your business repairs, refurbishes or changes the product in some way • you imported it from outside the European Union • you cannot clearly identify the manufacturer • the manufacturer has gone out of business The manufacturer is liable for the product is none of these conditions are met. However, you will also have to show: • that the products were faulty when they were initially supplied to your company • that you provided customers with safety instructions and warnings about the misuse of the product.
