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Product liability insurance

Compare product liability insurance quotes

Compare product liability insurance quotes from UK insurers such as:

 

 

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What is product liability insurance?

 

You’re proud of the products you sell, and you want your customers to love them too – but if there’s a problem, product insurance can help. Product liability insurance is an insurance type that covers you against any costs if a customer takes you to court over one of your products.

However careful you might be, there’s always the risk of selling something that could cause injury or property damage. And even if a court decides you’re not to blame, you could still end up having to pay legal fees to contest a claim.

How does product liability insurance work?

Product liability insurance works by covering all your legal fees if a customer takes you to court over a faulty or defective product you sold them. If you’re ordered to pay compensation, your insurance will cover those costs too.

Before taking out product liability insurance, it’s important to make sure you need this type of cover. If you’re legally responsible for the products you sell, product insurance is crucial – but not all businesses are liable. In most cases, you’re responsible for making sure your products are safe if you’ve manufactured them yourself, or if they carry the name of your business on them. You’re also liable if your products were made by another company, but you’ve repaired or refurbished them – it’s up to you to make sure they’re fit for the public. Finally, you might be liable if the original manufacturer has stopped trading, if they can’t be found, or if they’re based in another country. If you’re not sure if this applies to your business, it’s worth speaking to a financial advisor.

What businesses need product liability insurance?

Not every type of business needs product liability insurance – but for those that do, it’s a crucial form of protection. Here are a few industries where product insurance can help:

  • Restaurants and cafés

    If you operate a restaurant or café, any food or drinks you prepare yourself count as a product – so you’re liable if someone gets food poisoning

  • Manufacturers

    Whatever it is your company produces, if it’s sold directly to the public there’s always the risk it could cause harm. That’s why it’s safer to get insured

  • Designers

    Even if your company doesn’t physically make its own products, a court might find that someone was hurt by a flaw in the product’s design – leaving you legally liable

  • Retailers

    If the company that made a faulty product no longer exists or can’t be found, then the retailer might be legally responsible for its safety

What other types of insurance can I get for my business?

Product liability insurance keeps you safe from claims for faulty or defective products – but there are other risks that business insurance can protect against. Here’s what you might need:

  • Public liability insurance

    This covers you against any claims from members of the public that aren’t related to your products – for instance, a customer could slip and fall in your shop or café

  • Professional indemnity insurance

    If you sell professional services, this works much like product insurance – it protects you against claims from clients if they’re not happy with your work

  • Employers’ liability insurance

    If you have any employees, this is a legal requirement: it covers you in case anyone who works for you becomes ill or is injured

  • Stock cover

    Stock cover helps protect your actual products. Losing stock can seriously hurt your cashflow, but your insurer will pay out if stock is lost, damaged, stolen, or destroyed 

Compare product liability insurance

Comparing business insurance quotes with MoneySuperMarket and our preferred partner SimplyBusiness
is the easiest way to find an affordable deal on cover. Here's how it works:

  • Tell us about your business

    Let us know about your business, who you employ, and how much cover you need, and we'll find deals tailored to your requirements

  • Compare deals

    You’ll be able to compare your offers by cost, level of protection, and any extras you might find useful

  • Choose the one you like

    Once you’ve found a deal you like, simply click through to the provider – they’ll take it from there

 

No, you’re not legally required to get product liability insurance. But if you’re legally liable for the products you make or sell, it’s something you should seriously consider. If a customer sues over a faulty product, you could have to pay costly legal fees, and even more if you’re ordered to pay compensation. But with insurance, your provider will cover these costs. 

 

Product liability insurance can be especially useful for anyone who sells second hand products. If you repair or refurbish any products you sell, it’s likely you’ll be legally liable if they hurt someone. And even if you aren’t, retailers are usually responsible for a product’s safety if the original manufacturer no longer exists, which is always a risk with second hand goods. 

 

 

Both product liability and public liability protect you against claims from members of the public, but they cover very different types of claim. Product liability covers you in case there’s something wrong with a product you sell. Public liability protects you against claims for other problems as a result of your business activity. For instance, a customer could becoming injured in your place of business. 

 

 

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