Manufacturing Insurance

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Manufacturer insurance, also known as product insurance, protects a manufacturer or supplier of a product from the cost of a compensation claim (usually injury) as a result of faulty design or defective manufacture. As a manufacturer you may be considered liable for any injury or property damage as a result of using your product, even if the fault is traced back to a component you have bought in a claim can still be made against you.

Manufacturing companies legal responsibility

Under the Consumer Protection Act 1987, products must be "fit for purpose" manufacturers are legally responsible for any damage or injury that a product you supply may cause.

Product suppliers

If you supply a faulty product, claimants may try to claim from you first, even if you did not manufacture it. You'll be liable for compensation claims if:

• your business' name is on the product - ie the manufacturer made it for your brand
• your business repairs, or modifies it
• you imported it from outside the EU
• you are unable to identify the maker
• the manufacturer has gone out of business