Product liability insurance
Tailored cover for when your product causes damage or injury to a person or their property
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What is product liability insurance?
Core cover available if you sell or provide products as part of your service
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.
How will product liability insurance help me?
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.
Comparing product liability insurance quotes
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.
Selling products online?
We can cover you for that too with online retailers’ insurance built for businesses that sell on the web. We offer excellent value and extensive cover, with stock insurance part of the package. Whether you’re a home-based business or high street retailer, our online retail insurance offers a tailored solution.
Comparing shop insurance quotes
The Insurance Octopus compares quotes from a range of insurers ensuring we deliver the right cover for your business at a price that’s right for you. In addition, we have the ability to bolt on extra covers that you won’t necessarily be able to get from other shop insurance providers.
Why choose us for your Product Liability Insurance?
We proudly make buying insurance different and our cover comes with a range of benefits.
Up to £5 million of cover
To help keep you and your business protected we can offer up to £5m worth of product liability as part of your cover.
Fast specific cover
To help save you both time and money. We compare prices from a range of different insurers so you don’t have to.
A specialist who knows your industry
We'll connect you with an agent who specialises in your field. They understand many of the challenges you face, and can truly get to grips with the type of cover you need.
Easy claims process
Accidents can happen, so when something does go wrong you can rest easy knowing our team is on hand to make the claims process as quick and stress free as possible.
Octopus customer rewards
We pride ourselves on the value we offer our customers, and with Octopus Customer rewards we give our customers a few additional benefits to their insurance such as discounts and offers to save them money.
No mid term fees, ever
We don’t charge any mid-term fees at all during the life of your policy – so there are no hidden fees following any changes you might need to make.
Product Liability Insurance FAQ's
Get the answers you're looking for
Do I need product liability cover?
Do you manufacture or sell products for the public or other businesses? If you do, then product liability cover is essential for your business to ensure that should any of your products cause harm or injury to a customer or damage to their belongings, you’ll be covered. No matter how airtight your products are, there is always room for error – and product liability insurance protects against this.
What level of product liability cover do I need?
The level of product liability cover you require can depend on a number of factors, from the risk factor involved in the product you’re selling through to the use of the product itself. The maximum possible cover is, of course, the best way to ensure that no matter what happens you will always be covered against fees and damages.
Is product liability a legal requirement?
Simply put, product liability isn’t a legal requirement. However, there are very few companies who choose not to protect themselves against this, as costs of paying for damages against products that have caused injury or damaged someone’s possessions can be expensive and problematic. This cover may not be a legal requirement, but it is a financial one for many manufacturers.
How product liability insurance works
Examples of Product liability Insurance in action
A £10,500 Product liability claim
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. 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 totaled £10,500.
A £15,000 case of the blues
A toy manufacturer gets an order in for their popular racing blue go-kart. They process right away and dispatch the product to the buyer. A few days later they are hit with legal action from the same buyer! They claim that a wheel that was not fitted properly came off when in use and caused their young son to crash. He broke his arm as a result for which they want compensation. The toy firm have £5 million worth of Product Liability Insurance in place which helps them to cover the £15,000 claim.