Manufacturers will work with different parts every day, ranging in size and shape that have different functions for what you are manufacturing. The integrity of your product is vital in producing a quality product and maintaining your reputation as a quality manufacturer, but what if some of those parts weren’t as high quality as your regular parts?
The Organisation for Economic Cooperation and Development and the European Union Intellectual Property Office has estimated in a report that counterfeit products account for 2% of global output, with an estimated price of £1.3 trillion. Counterfeit parts are usually below the quality of regular parts, which carries the risk of your products becoming hazardous or ineffective. Counterfeit parts could potentially lead to injury or damage to property for your customers, leaving you vulnerable to claims.
The first step for ensuring the quality of your parts is performing some due diligence on your suppliers. There are signs to look out for when checking that your supply line is giving you good quality parts for your products:
When you have taken the measures to ensure that your suppliers are providing you with legitimate parts, take your own initiative to prove that what they have told you is accurate.
A visual inspection can take time to perform, but when it comes to the safety of your products, it is a necessary function, so take the time to be meticulous. When performing your inspections, make sure you look out for:
If you have the equipment available, there are other tests that you can perform to ensure the quality of the parts you have ordered.
Even when you have been notified that your products have been dispatched, the condition that they were sent in may not be the condition that they arrive in. To ensure the safety of your products, carry out these checks:
Source: Zywave Inc. – Risk Insights: Manufacturing – Preventing counterfeit components
Even if you have taken all precautions when dealing with your supplier, defective or counterfeit parts can still make their way into your production line. If your product causes injury or damages property and you are found to be at fault, you could be prosecuted, face legal costs and suffer a business interruption, all of which can damage your company’s reputation.
Product Liability insurance is designed to protect your business in the event that someone tries to claim against you if they believe your product has caused injury or damage due to being defective through your negligence. Product liability insurance can cover you if your products were sourced from outside of the EU and even if the manufacturer of your parts has gone out of business.
At Premierline, we arrange insurance for many specialist manufacturers. So, whether you are a food manufacturer or a furniture manufacturer, speak to an insurance expert at Premierline who can assess your business insurance needs and find you the perfect manufacturing insurance quote for your business.
It is important to make sure that you have the right insurance in place to protect the business that you have built. Every business is different and has its own business insurance needs, which is why we work with some of the UK’s most well-known insurers to ensure that you are getting the right insurance cover for your business.
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