What is product liability insurance?
Product liability insurance covers the goods you make, those you supply and those you sell. This also includes any repair, service or maintenance works that you may undertake.
As such, we feel that it is an integral part of a quality craft insurance policy due to the nature of our crafters handmade products. Creative companies in the handmade industry mostly sell crafted items to the public, and this cover protects those businesses from potentially large pay-outs if something goes wrong.
The cover automatically includes associated legal costs, like:
- Solicitors’ fees
- Legal and litigation expenses
- Damages awarded
- Claimant’s costs
These are all expenditures which your business, or you personally, would otherwise be legally liable for. Claims of these types can produce very large awards so this type of cover is invaluable.
CraftCover provides a minimum limit of indemnity of £2m. You also have the option to increase this limit to £5m, covering your business as it grows.
Product Liability Insurance for crafters
Regardless of what you craft, you will likely benefit from having product liability insurance. We cover a wide range of crafts which many other providers do not.
These include, but are not extensive to:
- Candle Making and Wax Melts
- Cosmetics, such as Bath and Shower Products
- Cake Making
- Plastic and Resin Art
- Ceramics and Pottery
We also cover many other crafts. To find out how we can help insure your craft business, get a free quote today.
You may not think that a faulty product can slip through your quality control inspections, however, it can happen.
Having product liability insurance will help you to be ready if any accidents like this do happen, and will help to cover potentially large payouts to claimants.
Is product liability insurance required by law?
No, product liability insurance is not required by law however, you may find that any supplier or distributors you work with require you to have it. In addition to that, if your product is found to have caused injury, damage or death, you will be held liable and may be sued.
How much does product liability insurance cost for businesses?
The cost of product liability insurance depends on your craft and business needs. We can create a bespoke policy for you to suit all your specific needs.
Get in touch with us today to find out what the best insurance policy is for your business, as well as how much you should expect to pay.
Alternatively, get a quote with us today by filling out our quick and easy form.
What does product liability insurance cover?
Product liability insurance protects you against the costs of compensation for personal injuries and loss or damage to a property caused by faulty products. It also covers unforeseeable circumstances that your quality systems could not identify.
It is important to know product liability insurance may not cover faulty products from bad workmanship, or financial losses to a business or person caused by your faulty product.
If you sell your handmade goods online, it’s important that you have the right cover in place to best protect you and your business. Our dedicated blog goes into more detail on why you need insurance to sell crafts online.
What kind of businesses need product liability insurance?
Whether you hand make and/or sell products, it is essential that you have product liability insurance.
For crafters, it is especially important to have product liability insurance as you will be held responsible for any injuries or damage if not.
In addition, you are more than likely to have your brand’s name on the products you sell. If you do not have product liability insurance, and a third party sells a faulty product, you may be held liable due to the sole fact your brand name is on the product.
Why do I need product liability insurance?
In some industries, you may be required to have product liability insurance in order to trade or buy.
Whilst you may not be directly responsible, you still have a duty of care towards your customers and product liability insurance usually helps to cover this.
Anybody involved in the supply chain of a faulty or defective product could be held liable and asked to attend court. This can be particularly damaging if your business is small and you run both the production and sales of your product.
When do you need product liability insurance?
You should consider product liability insurance if your company designs, manufactures and/or sells products to the general public, customers, contractors or clients.
If you are unsure if you need product liability insurance for your business, feel free to get in touch with us today and we can discuss your specific business needs.
Who is liable for damage caused by a defective product?
Under the Consumer Protection Act, strict liability is placed on manufacturers for faulty or defective products.
This means that people who have been injured or had property damaged by the faulty products can sue for compensation without having to prove the manufacturer was negligent.
It is important to have product liability insurance in case something like this happens, as the insurance will help to pay out compensation and any legal fees.
What is the difference between product liability insurance and public liability insurance?
Product liability insurance covers you against legal liability if your product injures or harms someone, or damages their property. It protects you against the cost of compensation for faulty products causing injury or damage, as well as unforeseeable circumstances that quality control could not identify.
Public liability insurance however, provides protection against your legal liabilities to third parties if you are found to be responsible. This can include injury or harm to the public or damage to another person’s property.
Do I need a separate product liability and public liability policy?
No, our policy provides the same limit of cover for both Public and Product Liability cover.
Can I get product liability insurance for a craft fair?
Yes, when you attend craft fairs, it is mandatory you have product liability insurance. We provide this service automatically in our craft fair insurance, and can also provide additional cover options should you need them.
Speak with one of our team members today to find out more about what insurance types we can offer you and your craft business.