This clause requires you to carry insurance covering injuries or damage caused by products you sell or supply. For example, if you sell furniture and someone is injured because a chair collapses, product liability insurance pays their claim. The clause sets a minimum coverage amount (often £1–10 million depending on the product risk). This matters because product injury claims can be huge, and without insurance you'd personally pay damages, legal fees, and compensation—potentially losing everything.
Be honest about what products you actually sell and their real risk level. If you're selling low-risk items like office supplies, push back against a £10 million requirement—that's overkill and expensive. Get a quote from an insurance broker who specializes in your industry; they'll know the standard coverage amount and can help you negotiate a realistic figure with the other party. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires you to carry insurance covering injuries or damage caused by products you sell or supply.
Why should I care about this clause?
For example, if you sell furniture and someone is injured because a chair collapses, product liability insurance pays their claim.
What are my options?
The clause sets a minimum coverage amount (often £1–10 million depending on the product risk).
How does this affect small businesses?
This matters because product injury claims can be huge, and without insurance you'd personally pay damages, legal fees, and compensation—potentially losing everything.