Product Liability
Insurance

What is Product Liability Insurance?

Product Liability Insurance protects your business against claims related to injury or property damage caused by products you manufacture, sell, or supply. Whether you run a manufacturing business, retail store, e-commerce site, or wholesale operation, this insurance ensures you won’t face financial hardship if someone makes a claim against your products.

For manufacturers, wholesalers, distributors, retailers, and importers, Product Liability Insurance is essential to operate with confidence and comply with legal and client requirements.

Who Needs Product Liability Insurance?

Any business involved in producing, selling, or supplying products should have Product Liability Insurance in place. This includes:

• Manufacturers – Protection against claims if a product you produce causes injury or damage.
• Wholesalers & Distributors – Cover for liability claims if products you supply are found to be defective.
• Retailers & E-commerce Businesses – Protection against claims from customers harmed by products you sell.
• Importers – Responsibility for ensuring products meet UK safety standards.
• Food & Beverage Producers – Cover for contamination, allergic reactions, or harmful ingredients.

Why is Product Liability Insurance Important?

Even the most carefully designed and tested products can still pose risks. Without insurance, legal fees and compensation claims could significantly impact your business.

Common risks that Product Liability Insurance protects against include:

• Defective Products – Covers claims if a product malfunctions or has design flaws leading to injury or damage.
• Manufacturing Faults – Protection if an error during production causes a product to be unsafe.
• Failure to Provide Adequate Warnings – Covers claims if a product lacks proper instructions or safety warnings.
• Contaminated or Harmful Goods – Protection against claims related to unsafe food, drinks, or beauty products.
• Legal Costs – Covers defence and settlement fees if a claim is made against you.

What’s Covered in Product Liability Insurance?

Product Liability Insurance policies typically include:

• Compensation Costs – Covers claims for injury or property damage caused by your products.
• Legal Defence Fees – Protection against legal costs associated with liability claims.
• Medical Expenses – Covers treatment costs for individuals injured by your products.
• Product Recalls – Cover for costs associated with recalling defective products (depending on policy terms).

What’s Not Covered?

• Employee injuries – Covered under Employers’ Liability Insurance.
• Intentional negligence or knowingly selling faulty products.
• Contractual liabilities outside standard product liability claims.

Additional Cover You May Need

Depending on your business type, you may need additional cover such as:

• Business Building Insurance – Protect your premises and business assets.
• Employers’ Liability Insurance – Cover for employee injuries or illness.
• Professional Indemnity Insurance – Protection against claims for professional advice or services.
• Public Liability Insurance – Protection against claims from third parties for injury or property damage.

At Insurably, we have access to 100's of insurer markets, meaning that no matter how unique your requirements are, we know where to find the right cover to suit you.

Start your quote online, and rest assured that we’re working hard to match you with the best insurer, ensuring you get the coverage you need.