Product Liability Insurance
Discussion
One of my companies imports Deceased Patient / Coffin Handling Equipment from China, and then retails them into the UK, ROI and Channel funeral markets and has done for some considerable years. We have the usual combined insurances but with a Product Liability Insurance add on - in so far that should a product fail, and injure someone operating it, then we are covered.
The above is insured by a specialist funeral insurer.
The time is right to expand into the Living Patient / Disability Handling Equipment, but our existing broker is struggling to get their head around what I m wanting, given the end user will be living, and not deceased, so they have ruled themselves out owing to the niche of the existing business.
All products that come into the business are all CE and type approved. Target market will be B2B but not the NHS initially.
NewCo will be a separate entity - launch planned for 2026 Q4 with a further raft of products 2027 Q2.
Who do I need to be talking to, that could help us investigate our insurance options in this new space?
The above is insured by a specialist funeral insurer.
The time is right to expand into the Living Patient / Disability Handling Equipment, but our existing broker is struggling to get their head around what I m wanting, given the end user will be living, and not deceased, so they have ruled themselves out owing to the niche of the existing business.
All products that come into the business are all CE and type approved. Target market will be B2B but not the NHS initially.
NewCo will be a separate entity - launch planned for 2026 Q4 with a further raft of products 2027 Q2.
Who do I need to be talking to, that could help us investigate our insurance options in this new space?
Edited by ADJimbo on Friday 3rd July 16:34
Product Liability insurance is to indemnify the Policyholder for legal liability arising out of the sale or supply of a defective product.
This is sometimes confused in the minds of some and will not cover you for the cost of a product recall or situations where there is no property loss or personal injury. Product Liability also provides no cover if the item doesn't live up to customer expectations or fails to perform.
If you import a product from China and, for example, there are sharp edges which cause cuts then you can look to your insurers to provide a legal defence for you and pay any appropriate award if it can be shown that the product was defective.
I am not really convinced that the Newco business is significantly different in terms of exposure to risk as compared to many other importers unless you want to consider that you expect insurers to cover the effectiveness of the product you will be selling.
ADF Insurance claim to be specialists.
This is sometimes confused in the minds of some and will not cover you for the cost of a product recall or situations where there is no property loss or personal injury. Product Liability also provides no cover if the item doesn't live up to customer expectations or fails to perform.
If you import a product from China and, for example, there are sharp edges which cause cuts then you can look to your insurers to provide a legal defence for you and pay any appropriate award if it can be shown that the product was defective.
I am not really convinced that the Newco business is significantly different in terms of exposure to risk as compared to many other importers unless you want to consider that you expect insurers to cover the effectiveness of the product you will be selling.
ADF Insurance claim to be specialists.
Edited by K87 on Monday 6th July 10:32
I was with ADF/Merkel for a few years - couldnt even get quotes on any of the regular companies like Hiscox as we are medical.
Contacted Howdens Commercial on a mates recommendation (he does industrial lubricants so nothing similar) and after a few days/questions they matched the policy for half the ADF price.
Contacted Howdens Commercial on a mates recommendation (he does industrial lubricants so nothing similar) and after a few days/questions they matched the policy for half the ADF price.
You just need a broker who understands the risks.
Products issues - unlikely to subrogate to China so slightly more risk to the insurer.
Limit - if you want to go NHS in the future they're now pushing for £10M limits.
Market
Markel
Newline
Chubb
CNA
Travelers
Sompo
Beazley
QBE
Handful of MGA's
Some of those have £20k minimum premiums.
MGA's are likely to be the cheapest option.
Try InsuranceJon above - well respected in the profession.
If Jon's team can't help drop me a message and I'll see if we can.
Products issues - unlikely to subrogate to China so slightly more risk to the insurer.
Limit - if you want to go NHS in the future they're now pushing for £10M limits.
Market
Markel
Newline
Chubb
CNA
Travelers
Sompo
Beazley
QBE
Handful of MGA's
Some of those have £20k minimum premiums.
MGA's are likely to be the cheapest option.
Try InsuranceJon above - well respected in the profession.
If Jon's team can't help drop me a message and I'll see if we can.
Gassing Station | Business | Top of Page | What's New | My Stuff