Product Liability Insurance – Protection against Damage from Your Products
Do you sell or produce products? Then you run the risk of being held liable if your product causes damage. A product liability insurance protects your business against high damage claims, personal injury and material damage resulting from defects in your products. Whether you are a manufacturer, importer or supplier, with this insurance you cover yourself against financial risks and legal procedures.
What is product liability insurance?
A product liability insurance covers damage caused by a faulty or defective product. If a customer or third party suffers damage due to your product, you as an entrepreneur can be held legally liable. This also applies to your products imports from countries outside the EU or sells under your own brand name. The insurance provides coverage for:
✔ Personal injury – If a customer is injured by your product (for example an exploding power bank)
✔ Material damage – Damage to third party property caused by a defective product (e.g. an overheated charger causing a fire)
✔ Legal costs – Coverage of attorney and legal costs in liability claims
✔ Damage due to assembly or usage errors – Coverage if damage is caused by incorrect instructions or installation errors
Liability-Insurance we compare (Finass insures) among the best insurers, -allowing you for the Liability-Insurance receive the best and most affordable premium from us.
Who is product liability insurance suitable for?
✔ Manufacturers – You are responsible for the quality and safety of your products
✔ Importers – If you import products from outside the EU, you bear legal product liability
✔ Wholesalers and suppliers – Protection against claims, even if you did not produce the products yourself
✔ Online shops and retailers – Certainty if you sell under your own brand name
✔ Private label sellers and dropshippers – You are also responsible when products are delivered from abroad
Why is product liability insurance important?
🔹 Legal liability – In the Netherlands, as an entrepreneur you are liable by law for damage caused by defective products
🔹 Protection against high damage claims – Personal injury claims can amount to tens of thousands of euros
🔹 Mandatory for imports outside the EU – If you import products from outside the European Union, you are legally the producer
🔹 Strengthens trust with customers and partners – Insurance shows that you take product safety and customer service seriously
🔹 Coverage of legal costs – Including costs of legal assistance, litigation and any settlements
Frequently asked questions about the Liability:
With liability insurance you are insured if you are legally liable for damage. For example, if you cycle into a parked car, your cat knocks over an expensive vase or if your children shoot a ball through the neighbor's window. But also if you, your child or pet injure someone. Not every damage is insured. Consider intentional damage or damage caused with a motor vehicle. Rented items are also not covered by your liability insurance. For example, if you rent a sander for that painting job in the house. Or if you rent a party tent for a garden party.
A Liability insurance reimburses the damage you cause to other people's belongings. Like the television that slips out of your hands during a friend's move. Or your child who cycles into the neighbor's car. Or if someone else is injured through your fault.
A Liability insurance for private individuals (AVP) covers damage that you or one of your family members causes to someone else when you are not driving a car or other motor vehicle. This applies to damage to property and persons (personal injury).
You close one Liability insurance because you want to protect yourself and your family against the risk of liability. You can be held responsible if someone is injured through your fault. But also if you accidentally damage other people's property. Resulting in a claim for damages.
The Liability insurance does not cover: damage to rented items. damage that you have caused intentionally. damage occurred during your work.
What exactly does product liability insurance cover?
✅ Personal injury – Damage to persons due to the use of your product
✅ Material damage – Damage to third party items caused by your product
✅ Consequential damage – Damage resulting from the use of your product (exclusions may apply)
✅ Legal assistance and legal costs – Full support for legal claims and lawsuits
Take out product liability insurance today!
Are you a manufacturer, importer, wholesaler or webshop owner and do you want to protect your company against product-related damage claims? Then choose one specialist product liability insurance and prevent financial risks.
Compare the best insurance policies now and request a no-obligation quote immediately!
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