All you need to know about Product liability insurance

Product means any physical item which can be sold or given away. Your business will be covered by product liability insurance from claims which are related to the manufacture or sale of products, food, medicines or other products to the people. Manufacture's or seller's liability is covered by this insurance policy for losses or injuries to a buyer or user, which may be caused by a defect or malfunction of the product.

A person may try to claim from you first, if you supply a faulty product, though you did not manufacture such product. You will get compensation when if:

• a. name of your business is on the product.
• b. product is imported by you from outside of the European Union.
• c. you are not able to identify the manufacturer
• d. manufacturer has gone out of the business.

You should show that the products were faulty when those products were supplied by others.

• a. You have to show that adequate safety instructions and warnings were given to consumers about misuse.
• b. You should show that the terms were issued to the consumer in any sales contract about return of faulty goods to the manufacturer or processor.
• c. You have to make sure that product safety, quality control and product returns are covered by supply contract with manufacturers or processors. d. You have to maintain good quality control and maintain record keeping system.

This policies' premium depends on the type of product, volume of sales, and the role of the insured. You should make sure about your products, if you want to insure your products under product liability insurance.