Product Liability Insurance Australia

Product Liability Insurance for Australian Business*

Looking for affordable product liability insurance in Australia? Our friendly team of commercial insurance brokers may be able to help you find affordable insurance quotes on suitable cover for your product-based business.

If you are a sole traderself-employed contractor , or small business owner in Australia looking for product liability insurance cover, you may have come to the SMART place.

Don’t let your products HARM your business*

Just ONE instance of one your products “GOING WRONG” can cause SERIOUS HARM to your business- even if your product has been used in a way NOT intended by your business.

Many Business Owners are UNSURE if they are COVERED PROPERLY.
We help them find affordable and SUITABLE INSURANCE so they can run their business with CONFIDENCE.*

What is Product Liability Insurance?*

Product liability insurance is a type of business insurance that can cover the cost of a claim made when one of customer or third party is injured or suffers illness or property damage caused by a product that you have sold to him.

It is an essential cover for any business that is involved in the production, supply or sale of products. No matter what type of product you sell, there is always the potential for something to go wrong.

Claims of personal injury, illness or property damage resulting from defective products may result in significant financial claims for compensation.

Even if you and your product are found not to be at fault, you may still incur considerable legal costs in defending a claim against you. In some cases, you could even be found liable for damages when you are not the manufacturer of the product.

While you are most likely to be subject to such claims for products that you manufacture, you may also be liable if you have repaired or refurbished a product you sell or if it bears your company name. You could also be found liable if the manufacturer of the product is no longer in business (or otherwise cannot be traced) or is located in another country.

Product liability insurance is designed to protect you from financial losses resulting from such claims; including payment of your legal expenses and compensation you are ordered to pay if you are found to be legally liable.

Product Liability Insurance Explained Simply*

Product liability insurance may protect sole traders, contractors, and small businesses from claims of certain types of negligence in relation their products. For example, claims could arise if their product injured someone or damaged their property.

Here are examples of some of the business activities that can lead to product liability claims.

  • Supplying food or drinks can cause illnesses such as food poisoning.
  • Supplying clothing, appliances, equipment, tools, or furniture can cause an injury or damage property.
  • Supplying mobile phone or computer hardware accessories that do not perform their function as could be reasonably expected, resulting in damage to the mobile phone or computer.

Whether your products are used properly or improperly, claims can arise. Almost any type of equipment or product you supply can lead to an injury or property damage.

What Does Product Liability Insurance Cover?*

Product liability insurance may protect your business by reimbursing you against compensation claims for injury or damages caused by products you sell as well as your legal costs in investigating and defending such claims.

Depending on the circumstances, it may protect your business when a person suffers an injury or illness or their property is damaged (that they argue was caused by a fault in a product that you sold them) and they take legal action against your business to recover any losses they have suffered.

Even with all care taken to ensure that the products you sell are safe, accidents can always happen.

In many cases (when physical injury or major property damage occurs) investigating, legally defending, or having to settle a claim may result in a significant financial burden which could result in the closure of your business or even personal bankruptcy.

This is why product liability insurance is vital for protecting your business and gives you peace of mind knowing that you are covered.

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How Much is Product Liability Insurance?*

Product liability insurance is relatively inexpensive when you consider that for a modest monthly fee it may cover your business for several million dollars in damages. The exact cost of product liability insurance will depend on the size of your business and the types of products that you sell.

It could vary, for example, depending on whether your business manufactures products, resells or refurbishes other manufacturers’ products or only sells other manufacturers’ products.

A smart way to ensure that you are fully protected against any potential product liability claims for your business is to get a quote from one of our insurance brokers; after outlining the products you make or sell and your business activities.

Product Liability Insurance Differs from Public Liability Insurance*

Product liability insurance and public liability insurance both protect your business against allegations of negligence, but for slightly different types of claims.

From a practical perspective, business experts strongly recommend all small businesses to have both public and products liability insurance as their core covers.

For many small business occupations in Australia, insurance companies can combine product liability insurance with public liability insurance.

Whether combined or on standalone policies, the team of SMART business insurance brokers may be able assist by helping you find suitable product liability policies.

What are the Benefits of Public and Product Liability Insurance?*

Product liability insurance, when combined with public liability insurance, may protect your business for your legal costs, the costs of investigating the action and compensation to a third party. Negligence allegations usually result from a death, injuries, or property damage caused by negligence, in relation to your goods or services. Claims for accidental injury or property damage can be very expensive to investigate, defend and settle.

When obtaining a public liability insurance quote, we recommend you combine both product liability insurance and public liability insurance. Combining cover can save you money and administrative time by avoiding multiple renewal dates.

Compare Public and Product Liability Insurance Cover and Quotes*

Our friendly team can help you compare public and product liability insurance quotes and cover. Every working day we compare costs and policies from leading insurance companies such as Vero Zurich CGU and AIG.

Call us on 1300 542 573 or enquire online. We are here to help you find suitable public and product liability cover for your business activities at an affordable cost.