The In’s and Out’s of Commercial Liability Insurance
Let’s get specific
Instrux is all about products, and that means we look at things in detail, especially when it comes to insurance. One specific component we cannot overlook is product liability.
In our world, where we deal exclusively with products, it is crucial to understand how product liability fits into the bigger picture of business insurance. Therefore, product liability insurance is often part of the many business liability insurance policies that can be purchased.
What exactly is product liability?
Let’s face it: in the world of production and sales, something can always go wrong. Product liability places responsibility on manufacturers and sellers when their products cause damage. Whether it is a faulty coffee maker or a mischievous toy robot, the legal implications are real. The idea is simple: if your product gets someone into trouble, you as the producer or seller are liable. This forces companies to think seriously about the safety and quality of what they put on the market.
What do you need the insurance for?
Imagine: someone uses your product and things go completely wrong, from injury to damage, and suddenly you have a fat claim on your hands. As a company, you are obviously not waiting for this, but according to article 6:185 of the Civil Code in the Netherlands, a manufacturer is liable for damage caused by a defective product. So what now, you have to start paying immer by law.
Fortunately, there is then insurance that can assist. They will take on this claim and ensure that you as a company remain indemnified. Of course, they are not doing this out of the goodness of their hearts, as you have to pay a premium that is usually based on your turnover and industry.
But beware, there are snags
As with any insurance, there are points of interest. These show up in the fine print found in your insurer’s terms and conditions. As a result, you may think you are covered for damages when in reality you are not. So always carefully read terms and conditions of your insurance. Also, it is always advisable to hire an advisor for tricky insurance policies. At Instrux we always recommend Zuiderhuis, they can give expert advice the different insurance policies that may be useful for a business.
Without CE, no insurance
In addition to the fine print that sometimes makes you wonder, there is also a big letter that should be clear: no CE, no insurance. And by this we do not mean that you have to have CE on every product, as this is not allowed. No, we would like to emphasize the need for valid CE documentation. In fact, before they decide to pay out, the insurance company will ask you if they can review your documentation. If they subsequently discover that this documentation was incomplete or invalid at the time of the claim, you will still have to pay for everything out of pocket.
Do you now catch yourself paying premiums for some time, but not sure if you really have coverage in the event of a claim because your CE documents have never been checked? Then contact us with no obligation, and Instrux will help you make sure you have covered insurance.