Product Liability insurance covers the cost of compensation, legal costs and expenses for anyone who places a claim against you for an injury caused by a faulty product that your business designs, manufactures or supplies.

Even if you did not manufacture the products, you can be held liable for any faulty products (especially if your business’ name is on the product) or for any products that you have repaired, refurbished or changed for a customer, or if you have imported the product.

You may also be liable if you cannot identify the product’s manufacturer or if the manufacturer themselves have gone out of business.

Who needs Product Liability Insurance?

If your business designs, manufactures or supplies a physical product that is either sold or given away for free — including food and drinks — then you should consider taking out Product Liability insurance.

What does Product Liability cover help with?

Product Liability insurance helps to protect your business against the financial instability caused by compensation claims for any personal injuries caused by your faulty product and any loss of or damage to property caused by your faulty product or product faults or other unforeseeable circumstances that your quality control system could not identify – does not cover the faults only the resultant damage i.e. the injury or property damage.

Most businesses take out policies that cover them for compensation claims of between £1 million and £5 million.

When do I need to notify The Insurance Octopus of a potential claim?

You should let us know at the earliest opportunity if you have a situation which you think is likely to give rise to a claim against your business, it is important to take prompt action, in order to try and minimise the problem and avoid unnecessary legal costs and distress.

It is important to check the terms and conditions of liability policy for information on your notification requirements – take special note: a late notification or failure to notify will cause adverse repercussions for your business such as withdrawal of insurance cover.

How do I get Product Liability Insurance?

Get in touch with our specialist team here at The Insurance Octopus who can walk you through the different levels of Products Liability cover available for your specific industry or trade and help to you to get a competitive liability policy in place.

Alternatively, get a quote online.