If you supply goods for export, you need to consider whether your product could, in very rare cases, cause damage to a third party - either a person or property. These types of risks are covered by product liability insurance.
If you already have this insurance, check that the policy covers you for claims made outside the UK. Many policies have restrictions on where they apply.
What you need to cover
You'll need a policy that protects you against:
- safety claims
- manufacturing defects
- spoilage costs
- legal defence costs
- medical costs
A specialist broker will advise you on the best policy for your business.
Poor quality products and services
Note that product liability insurance does not cover you for claims against the supply of poor quality products or poor services.
Introducing a rigorous system of quality control - ie checking that your products meet certain standards - can help you avoid producing poor goods. See liability insurance and quality management standards.
Minimising the cost
A quality control system that ensures your products are safe, fit for purpose and meet required industry standards will also cut the cost of your premiums. This demonstrates that you are taking responsibility for your business operations seriously, in addition to having insurance in place.