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
- 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.
- 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.
- 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.
- 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.
Key contact
Get in touch with Nick
Contact our Insurance expert today and find out how we can support you to make a claim.
Smart pricing
We pride ourselves on smart pricing, by offering flexible, competitive and market leading fee structures, including monthly subscriptions, bundled legal support services, virtual legal teams, fixed annual retainers, fixed fees, as well as traditional hourly rates.
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.
Sectors we specialise in
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.
An insurance claim is a formal request made by a policyholder to their insurance company for compensation or coverage for a loss or damage covered under their insurance policy. The insurer reviews the claim and, if approved, provides the policyholder with the indemnity or compensation set out within the policy.
Insurance disputes can arise for various reasons, including:
- Disagreements over the interpretation of policy terms and conditions
- Denial of claims due to alleged non-disclosure or misrepresentation
- Disputes over the extent of coverage or the amount of compensation
- Delays in claim processing or payment
- Application of policy exclusions or limitations
To minimise the risk of insurance disputes, consider the following tips:
- Carefully review and understand your insurance policy terms and conditions
- Provide accurate and complete information when applying for insurance
- Maintain thorough records and documentation of your assets and any incidents that may lead to a claim
- Communicate promptly and clearly with your insurer during the claims process
If your insurance claim is denied, you should:
- Request a detailed explanation from your insurer for the denial
- Review your policy to understand the grounds for the denial
- Gather any additional evidence or documentation that may support your claim
- Consider seeking legal advice to explore your options for challenging the denial
A solicitor can provide valuable assistance in handling insurance claims and disputes by:
- Reviewing and interpreting your insurance policy
- Advising you on the merits of your claim and the best course of action
- Assisting with the preparation and submission of your claim
- Negotiating with your insurer on your behalf
- Representing you in mediation, arbitration, or court proceedings if necessary
An insurance adjuster is a professional employed by the insurance company to investigate and assess the validity of a claim. The adjuster evaluates the extent of the loss or damage, determines the amount of compensation, and ensures that the claim is processed in accordance with the policy terms.
Policy exclusions are specific conditions or circumstances that are not covered by your insurance policy. These exclusions are outlined in the policy document and can significantly impact your claim. It is important to review and understand these exclusions to know what is and isn't covered under your policy.
The duration of the insurance claims process can vary depending on the complexity of the claim and the responsiveness of both the policyholder and the insurer. Simple claims may be resolved within a matter of weeks, whereas more complex and higher value claims can take several months or longer. Prompt communication through specialist legal representatives and gathering of comprehensive and relevant documentation can help expedite the claims process.
Subrogation is the process by which an insurance company seeks reimbursement from a third party that caused the loss or damage after compensating the policyholder. This allows the insurer to recover the costs of the claim and helps keep insurance premiums lower for all policyholders.
Yes, you can dispute the amount offered by your insurer if you believe it is insufficient. To do so, you should:
- Provide additional evidence or documentation to support your claim
- Request a re-evaluation or second opinion from an independent adjuster
- Engage in negotiations with your insurer to reach a fair settlement
- Seek legal advice if necessary to explore further options for resolving the dispute
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
Related news & articles
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.
Contact us today
Whatever your legal needs, our wide ranging expertise is here to support you and your business, so let’s start your legal journey today and get you in touch with the right lawyer to get you started.
Get in touch
For general enquiries, please complete this form and we will direct your message to the most appropriate person.