Product Liability Insurance

How will Product Liability Insurance help me?

Product liability insurance explained

Would a claim against your business due a faulty product affect your business? Ensuring you have effective product liability cover should be at the top of your list. As a broker we’d recommend that any business that supplies products to members of the public consider taking out the cover. This essential cover is crucial in the event your business supplies a product that causes harm due to a malfunction or failure. Claims can be brought against you as a producer within 3 years of using the product, with no upper limit as to the level of damages that can be awarded.

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What is Product Liability Insurance?

cover for product manufacturers

Product Liability insurance covers your business in a situation whereby personal injury or property damage is caused by products sold or supplied through your business. Remember your business could be liable to pay compensation in some circumstances even if you were not the original manufacturer of the product, and the costs can often be severe.
The cover will generally apply to a manufacturer that supplies goods in either a trade or commerce sense.

A manufacturer includes a company that:

Puts together or makes the product

Imports the product, in cases whereby the manufacturer of the goods does not have an office in either the United Kingdom or European Union.

Uses its own brand name in relation to the product.

Holds itself out to the public as the manufacturer of the product.

Refurbishes or repairs a product to be resold.

Permits another person to promote the product as having been manufactured by the company.


If any 3rd party were to make a claim against your business and in turn be awarded damages, having a product liability insurance policy in place would cover the costs, including legal and defense costs, compensation awarded and some additional claims costs.

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Or call us on 0161 968 2041, Mon to Fri 9am - 5.30pm

Product liability cover in action

why you need product liability

A specialist store selling custom made bikes has been operating their business now for 10 years. A new customer enters the store and purchases a custom made bike for their child. However on this occasion due to a mistake in the manufacturing of the custom bike, a fault with the breaks occurs. While riding the bike the customer’s child is involved in an accident hitting a wall. The child suffers multiple injuries including a fractured left shoulder and broken wrist due to the accident.

What was covered?

The bike shop on this occasion accepted full liability, acknowledging that the fault occurred during the manufacturing process. The product liability in this instance will cover the business for the claim made by the new customer for the injuries their child has suffered due to the faulty bike. The claim was made well within the 3 year claim period and the compensation awarded totalled £10,500.

Compare Product Liability Insurance quotes from a range of UK insurers

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Or call us on 0161 968 2041, Mon to Fri 9am - 5.30pm

Why choose The Insurance Octopus?

If you make, produce or put together your own products or fall into the characterizations mentioned above for a manufacturer then product liability will be a must have cover for your business. When you’re considering taking out a policy, one of The Insurance Octopus specialists will discuss the requirements of your business and help compare personalised quotes from a number of major UK insurance providers. We can provide you with your business insurance and documents on the same day in most cases, offering a range of flexible payment options, including Direct Debit. Speak to us today to get a quote.

Get your quote

Or call us on 0161 968 2041, Mon to Fri 9am - 5.30pm