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Product Liability Claims

Product liability

At Freeths, we understand the importance of protecting your business from potential risks associated with the products you manufacture, distribute, or sell. Product liability claims can arise unexpectedly and have significant financial and reputational impacts on your business. This page aims to provide a comprehensive overview of product liability claims and insurance, explaining what they are, why they are important, and how they can safeguard your business. 

What is product liability insurance?

Product liability insurance is a type of coverage designed to protect businesses from claims related to the products they create, distribute, or sell. This insurance covers the costs associated with legal defence, settlements, and compensation if a product causes injury, illness, death, or property damage to a third party. It is an essential component of a comprehensive risk management strategy for any business involved in the production or sale of goods. 

Why product liability insurance is important

  1. Financial protection: Product liability insurance covers the costs of legal defence, settlements, and compensation, which can be substantial. Without this coverage, your business could face significant financial losses that could jeopardise its stability. 
  2. Reputation management: Handling product liability claims effectively can help maintain your business's reputation. Insurance ensures that claims are managed professionally and efficiently, minimising negative publicity. 
  3. Compliance and contracts: Many clients, partners, and regulatory bodies require businesses to have product liability insurance. Having this coverage can help you meet contractual and regulatory requirements, enabling you to secure and maintain business relationships. 
  4. Peace of mind: Knowing that your business is protected against potential claims allows you to focus on growth and innovation without the constant worry of unforeseen liabilities. 

Common product liability claims 

Product liability claims can arise from various issues related to the products you manufacture, distribute, or sell. Some common types of claims include: 

  • Design defects: Claims arising from inherent flaws in the product's design that make it unsafe for use. 
  • Manufacturing defects: Claims resulting from errors or issues that occur during the manufacturing process, leading to unsafe products. 
  • Marketing defects: Claims related to inadequate instructions, warnings, or labels that fail to inform consumers of potential risks associated with the product. 
  • Improper warnings: Claims that arise when a product lacks sufficient warnings about its proper use, leading to injury or damage. 
  • Strict liability: Claims where a customer is injured by a product, even if the business is not found negligent. 

How product liability insurance works 

Product liability insurance typically covers the following: 

  • Legal defence costs: The insurance covers the costs of defending your business against product liability claims, including attorney fees, court costs, and other legal expenses. 
  • Compensation and settlements: If a claim is successful, the insurance covers the costs of compensation and settlements awarded to the claimant. 
  • Medical expenses: The insurance covers medical expenses incurred by the claimant as a result of the injury or illness caused by the product. 
  • Property damage: The insurance covers the costs of repairing or replacing damaged property caused by the product. 

How Freeths can help 

At Freeths, our experienced team of solicitors specialises in handling product liability claims and litigation. We provide comprehensive legal advice and support to businesses and understand the complexities of these claims. We work diligently to protect your business reputation and interests in relation to the products you manufacture and/or supply. 

Contact us today to learn more about how we can help safeguard your business against product liability risks. 

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Contact our Insurance expert today and find out how we can support you to make a claim.

Our product liability claims services

Our product liability claims services

  • Risk assessment and management: We help you identify potential risks associated with your products and implement measures to minimise the likelihood of liability claims.

  • Claims handling: Our team manages the entire claims process, from initial investigation to settlement negotiations, ensuring a smooth and efficient resolution. 

  • Legal representation: If a claim goes to court, our solicitors provide robust legal representation to protect your business interests. 

  • Insurance advice: We offer expert advice on selecting the right product liability insurance policies to meet your business needs and ensure comprehensive coverage. 

Frequently asked questions about handling insurance claims and disputes

We understand that dealing with insurance claims and disputes can be complex and stressful. Our team of experienced solicitors is here to provide you with the guidance and support you need.

Below, we have compiled a list of the top 10 most frequently asked questions about handling insurance claims and disputes to help you navigate these challenges. 

Testimonials

  • "[We] were first introduced to Nick Sutton back in 2013 at the start of our business. Since then Nick has been an excellent and constant source for...

    Client testimonial, Insurance Manager

    international transport company

  • “Nick was a main point of contact between ourselves and DWF Solicitors. As claims handling agents… we provide claims support for all members… and I...

    Client testimonial, Claims Handler

    Public sector client

  • "I have worked with Nick for almost 5 years and during this time I have always found him to be open and approachable and his advice and guidance al...

    Client testimonial, Claims Manager

    international haulage client

  • “Nick was seconded to [our business] for approximately six months to support the Contract Risk Management process where we advise and guide the bus...

    Client testimonial, Head of Insurance & Risk Management

    International logistics company

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Disclaimer

Please note that content on this page is intended to be guidance and for information and illustrative purposes only, and is not intended to be legal advice. Please speak to Nick Sutton for specific advice in relation to your particular insurance issue. 
 
We are not insurance brokers and are not regulated by the Financial Conduct Authority.  As such we are not able to advise on insurance product availability in the market, quote premiums and/or place insurance cover on your behalf.

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