Product Liability – Up and Running with an Insurance Broker

Saving money for your company is crucial for the long run, especially if you want your investors and funds to be safe and sound. However, sometimes bad things happen. Yeah, whether the reason is a bad product or an injury caused to another business or person, failure of supply, you can lose money, reputation and clients. For that reason, a product liability insurance broker is the guy who can fix things. But, you will need to find one, and luckily this article will guide you to accomplish that.

One thing in particular, especially if you import products into Australia, you will need to insure them because each one of them is deemed to be manufactured by you. Because of that, together with the product liability insurance broker, you will create insurance that needs to be rated accordingly with your item and the response is fast in the even of manufacturing or design fault.


When looking at the financial impact of the product liability claim in every sense possible can be great, so it is crucial to have the right insurance for your business. There are a couple of situations that an insurance broker can help you review your insurance.

  • Another thing to consider is the disclosure of all business activities. If you plan to change your activities over the years, always inform your insurance broker, because sometimes undisclosed activities can be a significant impact on claims.
  • One factor that is above all is the sale factor. To have a calculating premium you will need to disclose all the right sales or the claims payments will be effected. After every renewal yearly, you must update your expected sales. This all can be accomplished with an insurance broker.
  • To make sure that the insurance is up and running, if you decide to import products in Australia, you are also deemed as the producer, so every fault falls upon you not the original manufacturer.
  • If you also employ sub-contractors, analyser your liability policy and how it will respond if they preform under your expectation and if there are any injuries during the process. This can easily be managed by the insurance broker, creating a document that ensures your company from any dealings with second or third parties.
  • Sometimes special endorsements are required to be added to your insurance which solely depends on your business dealings and activities. So, make sure that you read and understand these engrossments, or just speak with your insurance broker and let him explain all the things in detail.
  • Finally, read all the exclusions that are contained in the policy wording. Sometimes a few exclusions that mention faulty craft, recall or liability can save the reputation of your company.

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