Limiting Public and Product Liability Risk

Public and Products liability protect a company against claims that may stem from property damage or third-party personal injury caused by your products. The definition of Products Liability may include items that are manufactured, constructed, sold, handled, installed, imported and exported by your company.  There are plenty of reasons why a product may cause injury such as an error when installing or a manufacturing defect A manufacturing defect is when the issue with the product occurred while it was being made. The problem could have occurred during the assembly, or a key piece is missing. It is especially imperative for small companies that sell and produce products to ensure that they have a combined Public and Products Liability Policy. This includes florists, gift shops, restaurants, clothing stores, wholesalers, pet stores and coffee shops. If there is injury or damage caused, the product liability insurance will likely cover the cost of investigations and defending of a claim. This coverage can include legal fees, court attendance and also cover damages should the claim be brought to court and damages awarded. Product liability insurance is generally an extension of a Public Liability Policy. If your company has this important cover, read the policy to ensure that your business activities are noted correctly,. Also, ensure that you understand the limitations of your plan as well and check if there are any geographical limitation and exclusions. But where do you start?

The first step would be to contact a reputable insurance broker who understands the kind of coverage you will need for the company.

• A good way to ensure you can obtain a competitive premium is to implement safety policies that will lower risk. That means checking that there are no loose roof tiles and floor tiles, to ensure that all cupboards are well secured, and emergency escape routes are marked clearly. Doing this can lower the number of claims and highlight to insurers you are a good risk.
• As labelling is one of the reasons to have product liability, it is vital to provide large clear and easy to read warning labels on the product. The label should be prominent and be found where your customer will quickly notice it.  A detailed graphic should also be provided for those who can’t read or have difficulty doing so. The label must be detailed about the risks involved in using the product and what measures the consumer can take to prevent issues.
• Incorrect labelling may lead to a health and safety risk. For example, if selling a dairy based product, this must be labelled clearly to prevent a lactose intolerant customer from buying it.  A review of the product labels will ensure that the information is accurate and contains all the vital data for the consumer.
• You can also implement a tracking system that handles the inventory to maintain quality products. It can help a company track wherein the supply chain a defect happened and any other defective products if a recall is issued. You will be able to find the rest of the faulty batch easily.
• Whether you are a wholesaler, retailer or manufacturer, Public and Product liability policies are vital for your survival. If a product causes damage to property, causes injury to a customer or leads to a health problem due to incorrect labelling, the company behind it will face claims and lawsuits. The company may be held liable for the damages and costs due to the faulty product. To effectively run your company and manage the risks involved, you can start by finding a suitable insurance provider.

You can start your search at Atlantic Insurance that provides quality insurance solutions throughout Australia. Contact them for an obligation free quote.