Product liability insurance
If your product injures someone or damages something, this cover can help with the costs. Issues from contaminated food, manufacturing mistakes and defective products can also be covered.
What is product liability insurance?
If your business sells or manufactures any products, then you may be liable if someone is injured or their property damaged by your business’ product. This insurance is designed to protect your business against the legal and compensation costs involved in a claim, with some of the features of the cover being:
- Compensation and legal costs covered
- Select from £1m, £2m or £5m cover
- Purchase as a package with public liability cover
- Pay how you like, monthly or annually
- Five-star customer service and claims support
- Protection even if the you’re not the manufacturer
Be quote confident
We're big on fairness. So if you find a lower price for a comparable quote, we won't just match it – we'll go one better and beat it.
So even better than apples to apples, apples to better apples. We're talking Galas to Braeburns.
As you'd expect, T&Cs apply.
Why would I need product liability insurance?
Protection against legal costs
Whatever role your business plays in the product lifecycle, it's impossible to have complete control over what happens to your product once it's in the hands of a customer. If something does go wrong, you could face a claim for injury or damage in relation to your product.
You may expect liability to fall with the manufacturer - but this isn't always the case. Even as a distributor, or retailer, you could be liable for a product liability claim. Particularly if the manufacturer can’t be traced, has gone out of business, or is outside the UK.
Support, when things go wrong
We hope nothing does go wrong - but if you do experience a claim made against your business, we'll be here to support you and your business through your claim, from start to finish with our 5-star rated customer support.
What does product liability cover?
Find out more about the risks it covers and what to look out for.
Cover against defective products
No matter how much quality assurance takes place at your business, you can't control everything. Depending on the type of product you deal with, a claim could range from fairly small to a devastating amount. Even if you are not the product's manufacturer, you as the reseller could be liable for an injury to a customer.
Cover against contaminated food products
If your business manufactures, supplies or sells food products, a claim could range from a food causing someone to be unwell, to something as serious as death - if, for example, an item were accidentally contaminated with an allergen.
Cover against products that don't meet standards
The UK government imposes strict standards on goods (plastics used in toys, for example). Often, countries where products are manufactured have different standards. If you accidentally slip up on due-diligence and sell or supply products that don't meet UK standards, you'll find yourself liable for any repercussions.
Once you've completed a quote, you'll be able to view a summary of cover. Please always refer to your policy documents for full details around exclusions, terms and limits of your customised cover. Read our guide to understanding your policy documents.
How do claims work?
Notify us of the claim
Ideally this should be done as soon as possible and within 30 days of you becoming aware of anything which you think may be covered by your insurance.
A good indicator of whether or not to let us know is if there's an issue which may require a payment to be made on your behalf.
We'll get on the case
We'll acknowledge your claim within 24 hours, and sometimes in as little as 30 minutes! This means you'll receive email confirmation of your claims reference and contact information should you need to speak to us.
We will then reach out to you within 48 hours to request any extra information we need to progress your claim.
We'll keep you updated on the next steps as the claim progresses.
A decision is made
We'll let you know if your claim is successful or not. If your claim isn't covered, we will always try to point you in the right direction and support you as best we can in getting back to normal.
If your claim is successful, once we have all the documents we need, we will aim to settle claims such as accidental damage, theft and lost equipment within five working days.
Product liability claims
There are various different types of product liability insurance claims that can affect different industries, and here are a few examples of claims where your business could be liable:
At your corner shop, you sell fresh packaged chicken to a customer who then develops salmonella, causing them to become seriously unwell. You may be liable for compensation costs due to the customer if they seek to make a claim.
A TV sold by your online electrical store has loose, uncovered wiring due to a manufacturing fault and a customer is electrocuted, leaving them in hospital. Your business may be liable for the compensation costs, despite not manufacturing the product yourself.
A portable home heater that your company builds malfunctions and causes a small fire in a customer’s house. Even if no one is injured, you may be liable to pay compensation costs to the customer to repair the damage caused to their home by the malfunctioning product
Product liability insurance FAQs
Product liability will protect you against costs in relation to a lawsuit brought against you as a result of your product(s) causing damage or injury.
Product liability cover is not mandatory in the UK, but many businesses consider it as they would be unable afford a large claim.
The cost of your product liability premium will vary depending on the level of cover selected and the type of products you sell.
The excess on this cover is £250 per claim. This means that should you need to make a claim, you'll need to contribute £250 and we'll cover the rest of the costs. Please be aware, however, that for offline advised clients who have tailor-made policies, the excesses do vary depending on the risk.
Even if your business is a supplier or a retailer, you'll want to consider product liability. Although product issues will often fall with the manufacturer, if the manufacturer can't be traced, no longer exists, or is located outside the EU, you may find yourself liable.
As a first line of defence, make sure you check the contracts you sign with the manufacturer. Understand where your responsibilities lie when it comes to product liability and we can help with the rest!
In the vast majority of cases, product liability insurance covers only physical products that can cause bodily injury or property damage. For digital products, you may want to consider cyber insurance.
Yes, if you sell any foodstuff (fresh, tinned or otherwise), then Superscript’s product liability insurance will cover your legal and compensation costs if a customer is injured or becomes unwell as a result of your product.
Yes, while it is not legally required in general, Amazon and several other major online marketplaces require that all sellers obtain liability insurance.
Authorised by the FCA
The FCA supervises UK financial services firms to protect consumers. We are directly authorised and regulated by the FCA and our Firm Reference Number is 656459. These details can be confirmed on the Financial Services Register at www.fca.org.uk or by calling the FCA on 0845 606 1234.
A-rated financial strength
Our insurance products are underwritten by Standard & Poor’s A-rated financial strength or higher. This means the underwriter has been independently assessed by the world’s leading credit rating provider and found to have a strong capacity to meet financial commitments (pay claims).
Protected by the FSCS
If you are a business with an annual turnover under £1m, charity with an annual income under £1m, or trust with net assets under £1m, then you will be entitled to compensation from the FSCS in the unlikely event we cannot meet our obligations. Full details and further information on the scheme are available at www.fscs.org.uk.