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Are you sure your policy includes public liability? I believe you need that even if you sell products made by someone else. My old policy was about the price of yours, it covered the fact that I worked from home and stock up to £2000 but nothing else.
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You would only need public liability insurance if you were intending on allowing members of the public, customers or suppliers to visit your home/place of work.
Business Link has further information on public liability insurance. This protects you against claims for injury or damage caused as a result of your business - e.g. if a customer slips on your shop’s wet floor.
Product Liability information can be found
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Product liability insurance - this protects you against claims for injury or damage caused by the products you make.
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Products must be "fit for purpose". Under the Consumer Protection Act 1987, you're legally responsible for any damage or injury that a product you supply may cause.
Your responsibilities
If you supply a faulty product, claimants may try to claim from you first, even if you did not manufacture it. You'll be liable for compensation claims if:
your business' name is on the product - ie the manufacturer made it for your brand
your business repairs, refurbishes or changes it
you imported it from outside the European Union
you cannot clearly identify the manufacturer
the manufacturer has gone out of business
Otherwise, the manufacturer is liable - or the processor, where the product involves parts from multiple manufacturers.
However, you must also:
show that the products were faulty when supplied to you
show that you gave consumers adequate safety instructions and warnings about misuse
show that you included terms for return of faulty goods to the manufacturer or processor in any sales contract you issued to the consumer
make sure that your supply contract with the manufacturer or processor covers product safety, quality control and product returns
have good quality control and record-keeping systems
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