Product liability insurance

[brightday83]

Hi,

I'm looking into mug printing, and also maybe dropshipping posters. I'm wondering, if I use someone/a company to dropship for me, would I need product liability insurance? Or would the dropshippers be the ones who would need the insurance? (Or both?) And can anyone please give me an idea of what I would be looking at, for product liability?

For the mug printing, if I was to do that myself, how much would that be (approximately)? I'm sure there are a number of factors that could affect this and cause this to vary, but I'm hoping for an idea. I have very low start up costs, so could really use an idea of what I'd be looking at.

Also, I've read a lot of posts in that people have said that they don't say they work from home using a press, because it can cause problems. But wouldn't they have to say what they're doing for tax records? (E.g if you spend £1/2 on overheards, wouldn't they have to say what their overheads are? And have receipts?)

Really new to this, and had no idea that would need insurance for printing mugs, until someone pointed out to me that mug handles can break off.

Any advice would be much appreciated.

Thanks,

Sarah.

[JMugs]

Yes you need insurance, just ring an insurance broker and talk it through with them.
One tip is to ask when done what else you can add without the premium going up. Every part of insurance will have points, these points add up to enable the cost of the premium to be established. Now you may have (Random figure chosen) 425 points, the premium night be for under 500 points, legal insurance cover may be 70 points, hence you could add that but not pay more on the insurance. Happens rarely but always worth asking.

Market stall cover and Ministry of Defence endemnity should be standard on good quality cover.

I'll never need that you might say, well guess what, I thought that, I have it, and I needed it to supply some stuff into the armed forces.

Janners

[James990]

The National Market traders association do this type of insurance! https://www.nmtf.co.uk/

[brightday83]

Thanks Janner for the advice, it's much appreciated!

I had naively thought that all I would need is a printer, paper, mugs, and a printing press (or oven, as I've since learned would be better), but then someone mentioned insurance to me; there's so much to learn, it's a mine-field.

[brightday83]

Thanks James, I'll have a look at the link

[pw66]

Product liability insurance covers you if your product causes injury or damage to third party property. It doesn't cover you for goods damaged whilst being shipped.

[brightday83]

But isn't the postal service/courier service insured for that? I thought if something is damaged in transit, it's down to the courier/or royal mail?

[pw66]

Yes, but your original post asked if you needed product liability for shipping goods. Some Royal Mail/Parcelfarce options give some cover. Couriers offer a standard amount, and give you the option to increase it. Interlink give £75 standard cover.

[brightday83]

Ah I see, maybe I didn't explain that properly; what I had meant, is that if you have customers order through your website or facebook page, and you then send those orders to a dropshipper who manufactures and sends out the products, even though you haven't made the products, or posted them out, would you need to pay product liability for them? In case anything is wrong with them when they arrive, that could injure the buyer (for instance, if they use a mug and the handle falls off) would this be your responsibility? Because although you didn't make the product or send it out, it's in your business's name (you sold it through your site/fb page)?

Hope this makes more sense.

[pw66]

It is always better to have it, for what it costs. It would usually come as part of a business insurance package, that would likely include employers and public liability insurance.
Whoever made the product, it is you who sold it, so you are correct in assuming that you could need it. The customers claim would be against you. Without it, if you had a claim against you, you would have to counter claim against the drop shipper.