Product liability insurance
What is product liability insurance?
This type of insurance provides protection against financial loss arising out of the legal liability incurred by an insured because of injury or damage resulting from the use of a covered product or out of the liability incurred by a contractor after a job is completed.
This type of insurance protects you against the cost of compensation for:
- Personal injuries caused by your faulty product
- Loss of or damage to property caused by your faulty product
- Unforeseeable circumstances such as product faults that your quality control system could not identify
Who needs product liability insurance?
You should consider product liability insurance if you own a business that designs, manufactures or supplies a physical product that is sold or given away for free. If anything goes wrong with your products, your business may be held liable for any injuries to people or damage to property caused by a faulty product.
3 important reasons to have product liability insurance:
It covers the business from the risk of having to pay costly reimbursements
The business may not have the cash to pay for compensation to customers or clients, so having this type of insurance cover can be quite helpful in this sense.
Your regular liability insurance may not cover all liabilities
As a business owner, you need to have specific types of insurance cover. This type of insurance may however be considered to be more specialised, so it may require special attention.
Affordable insurance is a reality
By comparing insurance quotes you will be able to get insurance cover at competitive rates.
Where to get product liability insurance in South Africa:
South Africa has a wide array of insurance companies that provide a range of solutions. Some of these companies offer specialised insurance products, such as product liability insurance.
Some of these insurance companies include: