Product liability insurance
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
- Flexible monthly rolling subscription
- Cancel or change at any time with no fees
- Protection even if the you’re not the manufacturer
Set up your product liability insurance online in less than 10 minutes
Change or cancel it at any time, with no fees or penalties
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.
How do claims work?
You make a claim
Log in to your online account and go to the ‘Make a claim’ section. There, you can make a claim directly – there's no need to call us.
We'll ask you for some details about your claim, including the date of the claim made against you, type of claim and its detailed description.
You can also attach any relevant supporting documentation like a letter of demand or a statement of claim.
We'll get on the case
Once submitted, your claim will be assessed.
If the claim is large, we may need more information from you. Or, if it's small, it may be able to be settled quickly without the need for further information.
Either way, we'll keep you regularly updated and you'll be able to see the status of your claim on our customer portal.
Your claim is settled
After it's been assessed, we'll let you know if your claim has been successful or not.
If you’re liable for something we will assist you with legal support and cover legal and compensation costs where appropriate.
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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. Our product liability insurance starts from £29.95 per month.
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.
Customise your cover
To simplify things, we've categorised our covers into three groups: essential covers, professional covers, and management covers. You'll be guided through these different options during the quotation process.
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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.fca.org.uk