Product Liability Insurance
product liability insurance
Is there a rule of thumb for how much public liability insurance we need as a business (e.g. x times turnover)?
My business is trying to extend its public liability insurance but we aren’t really sure how to work out how much we need. We sell food products to the public in the UK, Europe and the US and don’t want to find we are under insured but the premiums are high so we don’t want to pay too much.
There isnt a rule of thumb.
If you supply goods under a contract then there may be a contractual amount of cover to buy. You also need to consider whether you have assets in the US, many states will require you to buy local, admitted liability cover.
The liability you do buy should include Financial Loss cover and you should also consider Products Recall cover.
You need to be looking at Products Liability cover of £20,000,000 and upwards and the fact that you are asking the question means that you need the advice of a multi national insurance broker.
Product Liability Insurance Specialist
Liability Insurance for Small Businesses
There are over 80% of the businesses in United States that are run in partnerships or individually. For almost all of these small businesses, these kinds of ownership may put the business and individual at a liability risk. Having appropriate and adequate small business liability insurance can then protect your business and you from fiscal damage.
A general crisis for a limited company or an incorporate is that the trade owner may believe he is completely sheltered from individual liability and that liability insurance is not necessary at all! This however is not the case always, you tend to be personally liable if:
- If you have signed up a guarantee for a personal loan
- If you happen to injure somebody personally
- Acting in an irresponsible manner
- Following illegal and corrupt business practices
- Not operating your business as a separate body
Business Liability Insurance
Business liability insurance safeguards and protects small businesses when there is a lawsuit or against personal injury and property damage. This insurance will cover the compensation for a lawsuit and other legal costs. There are several kinds of liability insurances depending on the size and kind of your business. They are:
- General Liability Insurance: this is also know as Commercial General Liability-CGL and is one of the best insurances needed to protect your small business. General Liability Insurance covers personal injuries, property damage and false advertising claims.
- Professional Liability Insurance: Businesses that provide services are generally recommended to have this kind of insurance known as errors and omissions. This kind of insurance covers your business against errors and omissions, malpractices and negligence. Doctors, independent contractors and other technology consultants are required to carry Professional Liability Insurance.
- Product Liability Insurance: small businesses that are into selling and manufacturing consumer products are required to have this kind of insurance in case the consumer is affected by the usage of the product. The coverage amount and risk mainly depends on the kind of business you own. A scrap material retailer will generally have lesser risk than a kitchen stove maker.
Group Rates: most of the business groups and trade associations provide good benefits and lower insurance rates for their members if they become a part of their association
Coverage Amounts: Be sure to shop around and look for lower rates before you buy a Liability Insurance. Also make sure to assess the policy details to see what is included and excluded from the coverage!
Getting in touch with a Specialist Broker who has experience in working with the industry will enable you to get good rates and best coverage required for your small business.