Product liability insurance needed for re-selling?

MrCostington

If I purchase a product directly from an EU manufacturer and sell it to consumers, as is, do I need product liability insurance? Assuming the manufacturer is covered, of course.

I understand I might not get the definitive answer here, but maybe someone can point me in the direction to get that?

I feel if I ask a broker, they will say yes, regardless of the actual need.

Thanks!

Chiorino

The answer is yes. While the manufacturers insurance will cover their liability in relation to the product i.e. if a manufacturing defect causes loss or injury, if there is an issue with a product that, for example, is caused or attributed to you not storing the product correctly, then you would likely be deemed to be liable.

Bearing in mind also, the nature of things being what they are around claims at the moment, if something does happen and you are in the supply chain, you will in all likelihood be brought into proceedings. Even if you are eventually found not to be liable, you will still have to incur costs to defend the claim, which your insurer will pay if you have cover in place.

MrCostington

Thanks, I expected that to be the answer, but just thought I'd check to make sure

silver2020

If you are in retail or distribution, a standard shop/distribution policy should have in included.