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:

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

It may be useful for businesses in:

• Retail
• Technology
• Servicing
• Installation.

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

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
• Alteration
• Repair
• Supply.

As part of your work, you might:

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

You may be just one part of a product’s supply chain. However, 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.

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, 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 representation costs up to £250,000.

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.
• Representation costs up to £250,000. This is covered if someone makes a criminal claim against your business. For instance, for breaking the law or failing to meet regulations.

• 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 
• Asbestos 
• Any deliberate or reckless acts 
• Your transmission of a computer virus, which cyber insurance could cover 
• Injury to your employees, which might be covered under employers’ liability, or damage to your business property
• Professional advice you give, which might be covered by professional indemnity insurance.

Please refer to the policy documents for the full details of inclusions and exclusions of this cover. Policy documents are available when purchasing online. You can also contact our customer services team for more information. 

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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 that 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 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 suppliers, a policy could provide welcome reassurance. 

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