Product Liability Insurance

Whether you're a manufacturer, retailer, distributor, or importer, your business could be held liable if a product causes harm, injury, or property damage. Product liability insurance is designed to help protect businesses against these types of claims. It can provide financial cover for legal fees, compensation, and damages that may arise from faulty or unsafe goods.
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How It Works

1

Call us or complete our online quote form. We’ll collect a few key details about your business.

2

We’ll contact you to confirm everything, talk through your needs, and match you with the right level of cover.

3

We compare quotes from our panel of 20+ insurers, present your options, and explain the details before you buy.

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Why Compare Product Liability Insurance with Us?

Access to leading UK product liability insurance providers
Competitive pricing and multiple quote options
Flexible cover limits and optional extras
Support from experienced UK-based advisers
Competitive pricing and multiple quote options
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What Is Product Liability Insurance?

Product liability insurance is a type of business insurance that can help cover compensation claims made by third parties who suffer injury or damage due to a product a business has designed, made, sold, or supplied. This form of protection is particularly relevant for businesses that handle physical goods, including:

  • Product manufacturers
  • Retailers and wholesalers
  • Importers and exporters
  • E-commerce sellers and dropshippers
  • Food and drink suppliers

Even if your business did not manufacture the product, you could still be held liable under UK law if you’re associated with the supply chain.

Who May Need Product Liability Insurance?

You might consider product liability insurance if your business:

  • Manufactures or assembles products, even from components made by others
  • Imports goods from outside the UK or EU
  • Distributes or sells items under your business name
  • Repairs or modifies goods that are later sold
  • Rebrands or packages goods for resale
  • Even if a fault occurs upstream in the supply chain, legal responsibility could still fall on your business depending on your role.

 

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What Can Product Liability Insurance Cover?

Policies sourced through us could include protection for:

  • Injury to third parties: Cover if a product causes bodily harm to a customer or member of the public.
  • Property damage: If a product causes damage to someone else’s property.
  • Legal defence costs: Legal representation and court fees associated with a claim.
  • Compensation payments: Cover for settlement fees if your business is found liable.

The specific cover and limits available can vary depending on the insurer and policy selected.

Common Product Liability Claims

Examples of incidents that could lead to a claim include:

  • Electrical appliances causing fire or injury
  • Food or drink products causing allergic reactions
  • Furniture or toys that break and cause accidents
  • Beauty or skincare products triggering adverse skin conditions
  • DIY tools or sports equipment resulting in harm due to faults

Having the appropriate cover in place can help mitigate the financial and reputational damage caused by such events.

FAQs

While product liability insurance is not a legal requirement in the UK, certain contracts or supply agreements may require it as a condition of trade. Many businesses choose to have it in place to protect themselves against unexpected legal costs and claims.

Product liability insurance protects your business if a product you make, sell, or supply causes injury or property damage. It covers legal defence costs, compensation payouts, and related expenses if a faulty product harms a consumer.

These two covers are often confused, but they offer different protections:

  • Product liability insurance: Covers harm caused by defective goods your business supplies.
  • Public liability insurance: Covers injury or damage caused by your business activities (e.g., slip and trip accidents on your premises).

Many businesses choose to hold both types of cover as part of a broader commercial insurance package.

Yes. If you import goods from outside the UK or rebrand/resell products, you may be treated as the manufacturer in the eyes of UK law and therefore held liable. Product liability insurance helps cover this risk.

If a customer is injured by your product, you could face a personal injury compensation claim. Product liability insurance covers legal fees, settlements, and court costs, protecting your business from financial loss and reputational damage.

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Helpful Articles & Updates

Understand how product liability insurance works and get expert tips to keep your business protected.