Product Liability Insurance

  • Tailored cover for when your product causes damage or injury to a person or their property
  • Compare quotes from a wide range of insurers now

Product Liability Insurance

What Is Product Liability Insurance?

Whether you sell products with your business name or brand on them, manufacture your own products or import products to sell in the UK, we’ve got you covered with our product liability insurance. We can tailor packages to businesses of all kinds – including those that sell food and drink, toys, kitchen equipment and furniture, as well as computers, laptops and mobile phones. Also protecting those that refurbish, repair or repurpose products, as well as those that sell stock from manufacturers that may have gone out of business, at The Insurance Octopus, we help you create a policy that meets your needs. A Feefo Platinum awarded company that offers flexible payment methods, you’ll be in safe hands with us, and we’ll never let you down.

We know that you’re busy, so we never take up too much of your time. To get a product liability quote, simply fill in our form, request a call back, and one of our experts will take you through the process. And when it comes time to update your policy, we don’t charge you administration fees for mid-term adjustments. That’s just not how we work.

Why is product liability insurance important?

Injury Cover

Claims can be brought up by customers within 3 years of them using a faulty product, with no extent to the compensation that may be awarded.

Damages To Property

Losses of, or damages to, property, due to your faulty products can be covered with this policy.

Unforeseen Circumstances

You may do all the correct checks, but quality control systems do make mistakes. Faults and physical damage caused by malfunctioning systems are covered too, under a standard product liability policy.

Safety Instructions

In the event a third party is injured using your products and tries to claim against you, even with safety instructions provided, this cover will protect you too.

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 defence 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 characterisations 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.

Providing critical cover to sellers, manufacturers, the hospitality industry and many others.

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.

Product Liability Insurance FAQs

  • 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.

  • 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.

  • 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.

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.

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.

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.

Get Product Liability Insurance off your to do list

Help protect and grow your business with a tailor made Product Liability policy from The Insurance Octopus

Insurance Know How Making business insurance easier to understand

The ultimate small business checklist to help protect against cyber threats

Cyber threats are heard about more and more in the news with many attacks affecting larger businesses. However...

The top 10 Cyber Insurance claim types

Cyber insurance claims are becoming more and more common with each passing year. As business grows more depend...

How much does cyber insurance cost?

Cyber insurance, which covers your business against the effects of a serious cyber incident, is not an “off ...

Get to grips with Under-insurance & The Insurance Act

Inadequate cover presents a great risk to businesses – help ensure your cover is more than adequate by u...

Business Insurance Blog For all the things business & insurance