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Liability > Product Liability

If a product has been supplied by you which is in some way defective and causes injury to, or damage to the property of, a third party then you can be held liable. A product is anything manufactured, supplied or given away by you. Where you supply something manufactured by someone else it may be possible to refer the claim to them but where it is manufactured overseas and you have imported it you will be held as liable as though you manufactured it. Legal liability arises both at common law and under statute, particularly the Consumer Protection Act 1987 which clearly states that all products must be “fit for purpose”.

Insurance protection covers legal liability following the sale or supply of defective products. It also covers advice given in connection with the product, provided you haven’t charged a fee for the advice. The policy will also cover the legal costs of defence and the claimant’s costs and damages awarded against you if you lose.

The policy will not cover faulty workmanships, faulty design or failure to perform the products intended function. These risks can be insured separately.

We are experienced in arranging cover for the manufacturers of complex machinery and equipment as well as more straightforward products.