Broker-arranged
Product liability insurance
Cover for injury or damage caused by goods you make, import, sell or supply. If you import or manufacture products, Australian Consumer Law can treat you as the manufacturer, and a licensed broker arranges cover that fits.
- For makers, importers and wholesalers
- One short form, then a licensed broker takes it from there
What is product liability insurance?
Product liability insurance covers claims that goods you make, import, sell or supply caused injury or property damage. Many small business public liability policies include products liability. Standalone or higher cover is arranged through a broker for manufacturers, importers and businesses with higher product risk.
Why importers and makers need to check their cover
| Rule | What it means |
|---|---|
| Who counts as the manufacturer | Under Australian Consumer Law, a manufacturer can include whoever makes or assembles the goods, imports them when the maker has no office in Australia, or puts its own brand on them. |
| Mandatory reporting | Anyone in the supply chain who becomes aware of a death, serious injury or illness associated with a product must report it to the ACCC within 2 days. |
| Recalls | If you recall a product, you must tell the ACCC. Recall costs are usually a separate cover from product liability. |
What a broker will ask about
What product liability won’t cover
These need other cover, or aren’t insurable:
- The cost of a recall.Product recall cover is usually separate.
- Replacing faulty products.Product liability covers the injury or damage they cause, not the goods themselves.
- Advice about products.Professional indemnity, if you advise customers as a service.
How to get product liability through us
Product liability questions
Is product liability included in public liability?
Often, in small business policies. Manufacturers, importers and higher-risk products may need standalone or higher cover, arranged by a broker.
Do importers need product liability insurance?
Importers can be treated as the manufacturer under Australian Consumer Law when the maker has no office in Australia, so it’s worth checking your cover.
Do I have to report injuries caused by my products?
Yes. Suppliers must report a death, serious injury or illness associated with a product to the ACCC within 2 days of becoming aware of it.
Does product liability cover recalls?
Usually not. Product recall cover is typically separate.
Why is product liability arranged by a broker?
Cover depends heavily on the products and where they’re sold, so a licensed broker reviews them and arranges suitable quotes.
What’s the difference between public liability and product liability?
Public liability covers injury or property damage caused by your business activities, such as work on a client’s site. Product liability covers injury or damage caused by a product you make, import or sell, after it has left your hands. Most small business policies combine them as public and products liability.
What does product liability insurance not cover?
Usually the cost of recalling or replacing your own products, repairs under warranty, and, unless the policy says otherwise, products sold into the USA or Canada. Read the PDS for the exclusions that apply to you.
How much does product liability insurance cost?
It depends on what you sell, where you sell it, whether you make or import it, your turnover and your claims history. We don’t publish prices. A broker quotes on your details.
Keep reading
More broker-arranged cover
Sources
Product liability