Am I liable for the products I sell?
In Australia, if you manufacture a product, you are responsible for ensuring the product is safe and complies with Australian standards.
If your business does not physically manufacture the product, you may still be considered the manufacturer if your business imports, assembles or uses its brand on the product. For more information, please refer to the Australian and Consumer Commission website.
What does Product Liability Insurance not cover?
- Product recall expenses.
- Personal injury to you or any of your employees.
- Damage to property that the business owns.
- Loss arising from professional services or advice.
- Liabilities assumed under contract.
Insurance Tip #1
Read the endorsements on your insurance schedule. These endorsements can restrict the cover offered by your insurer or place certain requirements on your business activities for cover to take effect.
Insurance Tip #2
Disclose all your products. If you start to manufacture / import new products during the year, advise your insurance broker. An insurer can decline your claim if it is a result of an undisclosed product.
Insurance Tip #3
Accurately disclose business turnover. If your business has grown, your insurer needs to know. Under disclosing the size of your business will cause issues when / if you need to lodge a claim.