Cover if a product you make, sell or supply injures someone or damages their property, even without any proven negligence on your part.
Cover if a product you make, sell or supply injures someone or damages their property, even without any proven negligence on your part.
Injury from productsProducts you supplyImported goods
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Product liability insurance covers claims if a product you design, manufacture, import, sell or supply causes injury or damage. Under the Consumer Protection Act 1987, you can be held liable even if you weren’t negligent, a defect in the product is enough, regardless of how carefully it was made.
This is "strict liability": the injured party doesn’t have to prove you were careless, only that the product was defective and caused the harm.
Product liability insurance can include:
Compensation for injuryCompensation for property damageLegal defence costsImported and own-brand productsProducts no longer in productionProduct recall costs (add-on)
Public Liability
Covers claims if your business injures a customer or damages their property.
Employers’ Liability
A legal requirement once you employ staff, covering workplace injury claims.
Professional Indemnity
Covers claims that your advice or design was negligent and caused a loss.
Business Contents
Protects equipment, stock and fixtures against fire, theft and damage.
Business Interruption
Helps with lost income if a product recall stops you trading.
Who’s liable when a product is faulty?
Who’s liable when a product is faulty?
The Consumer Protection Act 1987 can make more than one business liable for the same defective product, check where you sit in the chain.
The Consumer Protection Act 1987 can make more than one business liable for the same defective product, check where you sit in the chain.
| Your role | Usually liable? | Why |
|---|---|---|
Manufacturer | Almost always | You’re the "producer" under the Act |
Importer into the UK | Almost always | Treated as the producer if goods come from outside the UK |
Own-brand retailer | Almost always | Putting your name or brand on it makes you the producer |
Reseller of branded goods | Usually not, unless the maker can’t be traced | Liability usually passes to whoever made or branded it |
Top Tip
If you’re not sure whether you count as a "producer" under the Act, assume you might. Rebranding, repackaging or private-labelling a product is often enough to make you liable, even if you didn’t manufacture it.
What could a product liability claim cost you?
What could a product liability claim cost you?
Product claims range from a single minor injury to a full recall affecting every unit you’ve sold, and you can be liable even if you didn’t make a mistake.
Product claims range from a single minor injury to a full recall affecting every unit you’ve sold, and you can be liable even if you didn’t make a mistake.
Minor injury
A customer is cut or burned by a faulty item.
Typical cost
£1,000-£20,000
Property damage
A defective product causes a fire or damages a customer’s property.
Typical cost
£5,000-£100,000
Serious injury
A design or manufacturing fault causes lasting harm to the user.
Typical cost
£100,000-£1 million+
A safety issue means every unit sold needs collecting and replacing.
Typical cost
Can run into hundreds of thousands
There’s no fixed price for product liability insurance. Your premium depends mainly on the type of product, your turnover, how the product is used and your claims history, higher-risk products cost more to cover than low-risk ones.
Type of product
Products that could cause serious harm cost more to insure than low-risk goods.
How the product is used
Products used by children or in safety-critical settings are rated higher.
Turnover
Insurers often price partly on your annual sales, not just product type.
Where you sit in the chain
Manufacturers usually pay more than retailers of branded goods.
Level of cover
£10 million cover costs more than £1 million, though the gap is often smaller than expected.
Claims history
A clean claims record helps keep premiums down at renewal.
How to get product liability insurance
How to get product liability insurance
Getting product liability insurance takes four steps: tell us what you make, import or sell, choose your indemnity limit, compare specialist insurers, then get covered, often the same day.
Getting product liability insurance takes four steps: tell us what you make, import or sell, choose your indemnity limit, compare specialist insurers, then get covered, often the same day.
Tell us about your products
What you make, import, sell or supply.
Choose your indemnity limit
From £1 million up to £10 million.
We compare specialist insurers
We search our panel of 20+ UK insurers.
Get covered and trading
Receive your documents, usually the same day.
UK-based specialist advisersAccess to specialist insurersNo obligation, just expert helpTrusted by thousands of businesses across the UK
Trusted by thousands of businesses across the UK
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
From everyday business insurance to complex specialist cover, our customers trust Insurance Revolution to find the right protection and provide expert support when it matters.
Do You Need Product Liability Insurance If You Sell on Amazon, Etsy or eBay?
Selling products through online platforms such as Amazon, Etsy, or eBay can open up valuable opportunities for small businesses and independent retailers. However, with increased reach comes increased responsibility. If a product causes injury or damage, sellers could be held liable, even if they did not manufacture the item themselves.
What Happens If You Don’t Have Product Liability Insurance? Legal & Financial Risks Explained
Selling, manufacturing or distributing products in the UK involves a duty of care to consumers. If a product causes injury or damage, the party held responsible may be exposed to claims, investigations and legal costs. Without product liability insurance, these risks could directly impact a business’s finances and reputation.
Product Liability Insurance for Importers & Wholesalers: Who’s Legally Responsible?
Importers and wholesalers play a vital role in the supply chain, but with that comes exposure to potential liability. If a product causes harm, legal responsibility may not always rest with the original manufacturer. UK law can hold other parties accountable, particularly where overseas producers are involved.
Product liability insurance FAQs
Product liability insurance FAQs
Straight answers on cover, cost, strict liability and recalls.
Straight answers on cover, cost, strict liability and recalls.
Product liability insurance covers claims if a product you make, sell, import or supply causes injury or property damage. It pays compensation and legal defence costs, and can apply even if you weren’t negligent.
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