Product Liability Insurance

[DK@MyBroadband]

We are an SME that is insured with Santam for Product Liability Insurance.

After 3 years in business we have a customer that may have a failed product application. Does anyone have an understanding of product liability insurance and when it can be used.

If we are unable to fix the problem we put our business at huge finance risk

Also not really sure where we stand legally - there has been misuse of the application by the customer. So a combination of misuse and product failure.

BTW we are a building contractor and applied a product from a supplier with a guarantee.

Any advice would be appreciated.

 

[creeper]

Phone your insurance broker (or Santam if you don't use it) and ask them. Product Liability Insurance is quite complex. Also, read your schedule and policy. It normally states what you are covered for or not.

 

[Hemi300c]

As mentioned your broker or Santam should be able to answer your questions.

I can add that the product itself and the design thereof is not covered and only usually damage caused by your product falls within the cover.