Products Liability Insurance

What is Products Liability insurance?

Products liability insurance covers the cost of compensation to anyone who is injured, or whose property is damaged by a faulty product.

What types of business need Products Liability insurance?

Any business selling goods, whether they are manufacturers, wholesalers or retailers.

Is Products Liability insurance compulsory?

Not generally but all sellers of goods, whether they are manufacturers, intermediaries or retailers, may incur liability to their customers and others for death, injury, illness or damage to their property. This be the result of inadequate design, faulty manufacture, inadequate instructions, contamination or damage prior to supply. 

The Consumer Protection Act 1987  stipulates that sellers can be held liable for faulty products even if they did not manufacture them. This only applies to products intended for private use and would arise, for example, if the business's name is on the product; the product was imported from outside the European Union; or if the manufacturer cannot be identified or has gone out of business. In these circumstances, strict liability applies which means that the business is automatically liable for any harm caused by the defect, regardless of fault.

How much cover do I need?

That depends on a numbers of factors including the type of product, the volume you sell, where your customers are and how much you can afford.

Where can I get a Products liability quote?