Product Liability Insurance

Product Liability Insurance

What is product liability?

Product Liability insurance covers the cost of defending claims and any compensation costs that your business might have to pay if products that you manufacture, supply, distribute or sell cause injury to someone or damage their property.

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Which businesses need product liability insurance?

If you are a UK manufacturer, distributor, wholesaler or retailer of products, you have a legal responsibility towards your customers for any injuries or damage to property that your products cause.

Even if you are not the manufacturer, you could still be sued under product liability laws. It may be the case that you cannot identify the original producer, for example.

How much product liability cover does your business need?

Product liability insurance typically provides between £1,000,000 and £5,000,000 cover.  The limit of indemnity you need depends on the type of products supplied and the industries involved. A business insurance broker will help you decide what limit you need.

Is product liability compulsory?

Product liability insurance is not a compulsory class of insurance. However without this cover, one claim could put you out of business.

How much does product liability insurance cost?

The cost of product liability insurance depends on your business, the types of products you supply and your turnover. Insurance for low risk products will be cheaper than insurance for high risk items. Any direct imports or exports may affect the premium, particularly if you import from outside the EU.  If you are a manufacturer, the cost is likely to be more than if you only involved in retail.

How do you get product liability Insurance?

Products liability insurance is usually sold together with public liability insurance and is often included as part of a commercial combined insurance policy or a small business package insurance policy. It’s best to discuss your requirements with a business insurance broker, who will be able to advise you on what insurance you need.

What sort of product liability claims are there?

Here are a few examples of accidents that have led to products liability claims:

  • Injuries caused by cups or bottles that break
  • Fires caused by faulty electrical products
  • Food items that have caused acute gastroenteritis

Get expert help

Here at Breathe we have many years of experience in arranging product liability insurance for manufacturers, distributors, wholesalers and retailers. We will help you make sure you have the right cover in place.

We compare products liability quotes for a wide range of businesses in the Maidstone and Medway areas of Kent and throughout the UK. If you would like advice or a product liability quote, please call us on 01622 620531 or fill in our quote request form at any time.