Product Liability


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Product Liability Insurance

0800 107 4885
Mon – Thurs: 08:30 – 20:00
Fri: 08:30 – 17:30
Sat: 09:00 – 13:00

What is product liability insurance?

Product liability insurance covers you from any damage done by a faulty or defective product that you are responsible for.

In terms of product liability lawsuits, anyone in the supply chain of a defective product can be taken to court, involving anyone manufacturing, selling or repairing the goods in question.

How to get product liability insurance

The most common type of product liability comes as an add-on to your public liability insurance package and will provide the same level of cover as the public liability insurance.

To discuss your options, call our team on 0800 107 4885 or compare quotes online. There’s no additional information that you would need other than what you would need to take out public liability insurance.

You also have the option of taking out full product liability insurance as a standalone product if you are the manufacturer of the goods, although this is normally only appropriate for factory owners.

Why take out product liability insurance?

Product liability insurance is not required by law, but like its public liability insurance counterpart, some companies might demand that you have it in place before they hire you to do any work.

Full product liability

Full product liability

Full product liability is for anyone that is the original manufacturer of a product. It can include cover for international distribution and tends to be a much more expensive policy as the risk is considered much greater.

How to get full product liability

Call our team on 0800 107 4885. You will need to discuss the options available to you and also confirm that full product liability is appropriate for your business.

Gather together as much information about your manufacturing process including the materials you use as this will need to be documented to accurately assess your level of risk.

Why take out full product liability insurance?

As mentioned, product liability insurance for manufacturers tends to be quite expensive because the risk attached is much greater. This means it is more likely that someone will take you to court for a manufacturing fault.

Additionally, some companies will not buy your products unless you have an adequate product liability policy in place.

Policy benefits

What does product liability insurance protect?

Product liability will cover any legal action relating to faulty products that is taken against you relating to:

  • Damage
  • Injury
  • Food spoilage leading to illness

It can also cover:

  • Safety and indemnity costs
  • Medical bills and legal expenses

Levels of cover

Product liability insurance will match the level of cover taken out for your public liability insurance which generally covers £1m, £2m and £5m worth of liability. Larger amounts are also available on request.

For appropriate amounts relating to full product liability it is best to consult with a broker.

Case Study

James Watt is a builder who runs a small contracting firm. He is hired to build a new staircase in a five-year-old property belonging to Mr and Mrs Baker. He buys the materials from a local building materials wholesaler and completes the job in just under a week.

The work is completed to a high and professional standard and the Bakers are happy with the job. However, three weeks later, Mrs Baker falls through the banister which splinters under her weight, causing her to fall and sustain serious injuries. She takes James Watt to court with a public liability lawsuit.

Although James’ work was not negligent, the product he used in the construction work is deemed to be defective and as he installed it he is responsible for the injury.

Conclusion: James is protected through his public liability insurance cover as part of his tradesman insurance policy so long as he has product liability insurance as part of this. The public liability cover on its own would not cover James as the issue is not negligent work on his part but a faulty product that he is responsible for.


Product Liability Insurance at a glance

Faulty or defective products can cause serious problems. For any business involved making or repairing products, particularly on a large scale, the risk associated with faults or defects is high - and the financial implications could potentially run into millions. We all know examples of products that have made it to market before a problem is discovered. Product Liability Insurance ensures your business can cope if an issue arises with the products you deal with.

Who needs Product Liability Insurance?

If your business involves the manufacture, repair or sale of products, Product Liability Insurance will provide a vital financial safety net and is worth serious consideration. Recalling products and fixing faults can be expensive. Add to those costs any potential claims for medical expenses or compensation as well as legal costs – and the implications become clear. If you think your business could benefit from product liability insurance, call our team on 0800 107 8949.

What does Product Liability Insurance protect against?

Product Liability Insurance provides protection in the event of damage or injury caused by a product or a product design fault. It also covers the risk of spoilage. Problems can occur as a result of negligence during the production process, or may simply result from issues that are not picked up during testing. Even if a business is not found to be negligent, it may still be liable in the event of a product subsequently causing damage or injury.

Is Product Liability Insurance compulsory?

No, for most industries Product Liability Insurance is not mandatory, however it does cover risk to a significant level and for this reason Product Liability Insurance is expensive compared to other business cover. Some purchasing companies may also demand Product Liability Insurance before buying from you. Professional advice should be taken when considering the scope and level of cover required for each business.

What’s covered?

  • Damage caused by products
  • Injury resulting from a product fault
  • Spoilage
  • Safety and indemnity costs
  • Medical bills and legal expenses