Product liability insurance

Product liability insurance is sold together with public liability cover.

It can help if your business is accused of causing injury, illness or damage because of a faulty product.

Do you design, produce, or supply products? Get an online quote for product liability insurance with Hiscox.


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Why choose Hiscox for your product liability insurance?


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We insure over 400,000 businesses*. We also hold the Feefo Platinum Trusted Service award.

*based on the number of policies sold in 2023


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Cover up to £10 million

We can offer liability cover up to £10 million. Tailor the protection you need.

Get public and product liability insurance for your business

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What is product liability insurance?

Product liability is a type of business insurance. It can help small businesses if someone claims they were injured because of a faulty product. For example, a customer may take a retailer to court after a faulty kettle scolds them, or a food maker could face action if someone falls ill after eating a contaminated ready meal.

You could face a claim wherever you sit in the product life cycle. You might be:

  • The product manufacturer
  • Involved with supplying the item
  • The owner of the shop where the product was sold.

It may be useful for businesses in:

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Product liability insurance – our guide

Product liability cover is built into a public liability insurance policy – watch our short video guide to find out more.

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All you need to know about product liability insurance

Do I need product liability insurance?

You may want to get a product liability insurance quote if you produce items for customers. For example, if you’re involved in product:

  • Design
  • Production
  • Alteration
  • Repair
  • Supply.

As part of your work, you might:

  • Sell
  • Distribute
  • Manufacture
  • Construct
  • Install
  • Test
  • Service
  • Maintain
  • Clean
  • Treat.

You may be just one part of a product’s supply chain. But your business could still face a claim if a fault causes injury or damage.

Product liability cover is suited to many types of businesses. An electrician may fix a toaster that later malfunctions and causes serious injury. Or a children’s toy shop may sell a ride-on truck that is found to have a sharp surface.

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Provide a few details about yourself. Then we can tailor your quote for public and product liability insurance.

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How much product liability cover will I need?

To find the right level of product liability insurance, work out the highest cost of a claim. This will depend on the:

  • Types of products you design, manufacture, repair or sell
  • Level of risk involved if something goes wrong.

Product liability insurance can help to defend and settle claims. It can step in if a faulty product causes:

  • Illness
  • Injury
  • Property damage.

Product liability is added alongside your public liability insurance. This is part of our combined products and public liability cover. You can tailor your policy with the level of protection you need – up to £10m.

Failing to meet regulations in this area can bring criminal claims too. We can also cover legal defence costs up to £100,000.

What’s included in your product liability cover?

We’ll cover you for:

  • Up to £10 million. The cost of defending a claim and any compensation you’re ordered to pay is covered. This extends up to the level of cover you select for your business.
  • Legal defence costs up to £100,000. This is covered if someone makes a criminal claim against your business. For instance, for breaking the law or failing to meet regulations.

Please refer to the policy wording for the full details of inclusions and exclusions of this cover. Or contact our customer services team for more information.

What’s not included in your product liability cover?

  • Injury to your employees or damage to your business property
  • Recalling, removing, repairing, reconditioning or replacing any product
  • Contractual terms that make you responsible for losses you would not be accountable for if those terms did not exist
  • Your transmission of a computer virus
  • Asbestos
  • Professional advice you give
  • Any deliberate or reckless acts.

Please refer to the policy wording for the full details of inclusions and exclusions of this cover. Or contact our customer services team for more information.

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Very easy to understand what I was buying and what was included, and the purchase experience was very quick and efficient.
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Hiscox is rated 4.8/5 on Feefo. This comes from real reviews in the past year, with 3512 in total.

When should I get product liability insurance?

You might consider getting product liability insurance as soon as you intend to start handling any products.

Product liability insurance is an extra layer of cover which is combined with a public liability policy and can be important if you work as part of a supply chain.

Therefore, whether you’re a manufacturer, supplier or retailer, having cover could become relevant as soon as you start creating, supplying or selling products to the public.

From small, independent retailers to large-scale manufacturers, a policy could provide welcome reassurance. 

To ask questions or get a quote, contact us by phone or email.

Product liability insurance: FAQs

What’s the difference between public and product liability insurance?

Public liability insurance can help if someone says your business activities caused injury. It can pay legal costs and compensation. It also covers claims over property damage.

Product liability is similar. But it’s for claims of injury, illness or property damage caused by your products. It could be something you’ve designed, manufactured, repaired, serviced or sold.

Is product liability a legal requirement?

Product liability insurance isn’t required by UK law. But it could be helpful for any business involved in a product’s supply chain.

You could face legal action if a faulty product causes injury, illness or property damage. Without cover, you may have to pay compensation or legal fees yourself.

Product liability insurance may also be part of any contracts you sign. These could be with suppliers or manufacturers.

Who is liable for damage or harm caused by a defective product?

Any business in the supply chain could be held responsible for harm caused by a product.

Each case will have its nuances, and evidence will be used to tell which party is to blame. For example:

  • Faulty products. The blame may fall on the manufacturer. But, if the fault came from a supplier, they or both parties may be liable
  • Contaminated food. If this causes illness, both the manufacturer and retailer could be liable

How much does product liability insurance cost?

The cost of product liability insurance depends on several factors. These include your claims history and the:

  • Nature and size of your business
  • Level of risk you can incur

We can’t give you an average cost, as this differs. But public and product liability insurance starts from £5.20* a month.

*Figures based on an average of all public liability policies sold to at least 10% of our customer base between January 2023 and January 2024

How to pay for product liability insurance from Hiscox?

As with our other covers, you can pay for product liability insurance via:

  • Debit card
  • Monthly direct debit
  • Annual direct debit

When paying via direct debit, you’ll agree on a regular payment date.

Product liability insurance: articles and guides

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