Damages you’re legally responsible to pay, as decided by a court, as well as the other party’s costs, for damage to someone’s property and personal injury to a third party arising from products sold by your business.
What is Product Liability Insurance?
Product liability insurance is designed for businesses who are involved in the production, supply of sale of products to members of the public. It helps protect against claims of personal injury or property damage that a third party suffers (or claims to have suffered) as a result of your business’s product.
In real terms, this means that if someone suffers an injury, or their property is damaged due to a fault in a product you have sold them, they may take legal action against you or your business to recover their loss. Product liability insurance is designed to help protect your business, and depending on the policy you take out, may cover incidents that occur at your business premises, as well as incidents at other locations.
Product liability insurance only covers claims made by external parties, not those made by your own employees. If you sell or supply products to customers, it is important to protect your business against claims that could arise from these products. That’s why Product liability insurance is often included as part of the Public Liability policies we arrange.
Who needs Product Liability Insurance?
Product liability insurance is recommended for any business that is involved in the production, supply or sale of products. No matter what type of product that is, there’s always the potential for something to go wrong.
Claims of personal injury or property damage can be incredibly expensive. Even if you’re not at fault, you may still incur considerable legal costs while defending a claim.
Product liability insurance can help safeguard your business by providing cover against such claims, including legal defence costs. So you can confidently go about your work, knowing your business has a level of protection if something goes wrong.
Do I need Product Liability Insurance?
With Australia having been coined the second most litigious society in the world after the US, the importance of Product Liability insurance is undeniable. Nowadays, it’s very easy for people to access information about their legal rights, making businesses more susceptible to having claims of third party damage or injury brought against them. Whilst these sorts of incidents may seem rare, if they do happen, by the time you add up the cost of legal fees to defend yourself or your business, and any potential damages you must pay, the cost can easily run into the tens of thousands of dollars. This is why Product Liability Insurance is so crucial. It may not be mandatory for certain professions, but as a small business owner, you may not have that kind of cash lying around, so a potential product liability claim could seriously damage your business.
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Why Aon?
Product Liability Insurance. Easy.
Easy to Understand
- Easy to digest information about insurances your business needs
- Experienced, friendly brokers on 1300 836 028
Easy to Buy
- Quick quotes online
- Purchase in just a few clicks
- Pay monthly options available
Easy to Manage
- Manage your renewals easily
- Adjust your policy anytime
- Request certificates of insurance quickly and easily
- Assistance in complex claims
Why choose Aon for Product Liability Insurance?
Aon is committed to making life easier for small and medium business owners with insurance that’s easy to understand, buy and manage. If you’re a small business owner, your job is anything but small, so when it comes to protecting your business with the right cover, it helps to have an expert on your side.
You can compare covers and take out a policy online in just a few clicks. But if you need help, our team of friendly experienced brokers are a phone call away, so you can have confidence you’re making a better decision for you and your business.
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Frequently Asked Questions
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