Do you need Product Liability insurance?

If you deliver a faulty product there is a chance that consumers will try to make a claim against you, even if you did not manufacture that product. Product Liability insurance covers you against damage or injury caused by a product, which is defined as a physical thing that can be sold or given away, of your business.

The Consumer Protection Act 1987 states that you are legally responsible for any damage or injury caused by any product you supply.

If you think you might need Product Liability insurance for your business and would like to discuss it please get in touch with one of our friendly, experienced and professional advisers by telephoning 020 7241 3232 or by using the live chat feature on the left of the page.

• You could save yourself £££s on your Product Liability insurance simply by asking us to get a quote on your behalf.
• We'll go to an extensive panel of insurers for you.
• You can call us between 9:00am and 5:00pm Monday to Friday and 9:00am and 1:00pm on Saturdays.
• You can also talk to one of our friendly and professional advisers using the live chat to the left of this page.
• It only takes a few moments to request a quote online and we'll do the hard work for you - we take pride in saving you time and money.

Frequently asked questions

What are my responsibilities?

If you deliver a faulty product there is a chance that consumers will try to make a claim against you, even if you did not manufacture that product. You'll be liable to pay compensation if:

• the product has the name of your firm’s brand on it (even if it has been manufactured for your brand by another business)
• the product has been changed, renovated or repaired by your business
• you imported the product from outside the European Union
• you have not clearly identified the manufacturer
• the manufacturer of the product has gone out of business

Otherwise, the manufacturer is liable - or the processor, where the product involves parts from multiple manufacturers. However, you must also:

• show that the products were faulty when supplied to you
• show that you gave consumers adequate safety instructions and warnings about misuse
• show that you included terms for return of faulty goods to the manufacturer or processor in any sales contract you issued to the consumer
• make sure that your supply contract with the manufacturer or processor covers product safety, quality control and product returns
• have good quality control and record-keeping systems

The viability of a claim made against you (and the premium) is affected by:

• to whom the product is sold
• where and how the product is utilized
• any labels or warnings offered with the product

What is covered by Product Liability insurance?

Product Liability insurance covers you against compensation awarded as a result of damage to property or personal injury caused by your product. Bear in mind that if someone is awarded personal injury compensation, the NHS can claim to recover the costs of hospital treatment (including ambulance costs). This applies to incidents that occurred either on or after 29 January 2007.

Product Liability insurance also covers you against unforeseen circumstances, such as product faults that your quality control system couldn't trace. However, if you simply make an inferior product, you may be unable to make a claim, or even get insurance. Bad workmanship is not covered either.

Before issuing a policy your insurer will want to know that your:

• manufacturing or services are conducted according to industry best practice
• staff are adequately trained
• equipment and systems are appropriate, up to date and well maintained