Product Liability Insurance UK — Cover for Manufacturers & Sellers

Strict Liability

Why Product Liability Is Different From Negligence Claims

Under the Consumer Protection Act 1987, producers can be held liable for damage caused by a defective product without the injured party needing to prove negligence.

Liability can attach to manufacturers, importers into the UK, "own-branders" who put their name on someone else's product, and in some cases suppliers who can't identify who made it
A product can be judged "defective" if its safety isn't what people are generally entitled to expect, considering how it was marketed, instructions given, and reasonably expected use
Claims can cover personal injury and damage to private property above a set threshold, though not damage to the defective product itself
General product safety obligations also require products placed on the UK market to be safe under general product safety regulations, separate from any specific claim
Liability isn't limited to the original manufacturer — retailers and distributors can also face claims depending on the circumstances

⚠️ Worth knowing: Strict liability doesn't mean automatic liability in every case — defences exist, including where a defect couldn't have been discovered given the state of scientific and technical knowledge at the time the product was supplied. This is genuinely complex law; treat this as general orientation, not a substitute for specific legal advice on a live claim.

Trade-Specific Risk

Who Actually Needs Product Liability Cover?

Product liability is relevant to more businesses than "manufacturer" might suggest.

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Manufacturers

The most obvious case — anyone making a product for sale carries direct exposure if that product later causes harm.

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Importers

Businesses importing goods into the UK from overseas can be treated as the "producer" for liability purposes, even if they didn't manufacture the product themselves.

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Own-branders

Putting your own name or branding on a product made by someone else can make you liable as if you were the manufacturer, regardless of who actually made it.

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Retailers & distributors

Sellers who can't identify their supplier when asked, within a reasonable time of a claim, can end up carrying liability themselves — making good supplier records a genuine risk-management tool, not just admin.

💡 Often sold combined: Product liability is frequently bundled with public liability as a single "combined liability" policy, since both respond to third-party injury or damage claims — check whether your quote already includes it before assuming you need a separate policy.

Choosing Cover

What to Look for in Product Liability Cover

A few things worth checking before you buy, whichever UK insurer or broker you compare.

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Indemnity limit

Check the limit matches what your contracts, landlord or clients require — common tiers are £1m, £2m, £5m and £10m depending on trade and risk.

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Claims basis

Professional and liability covers are often "claims-made" — cover depends on holding a live policy when a claim is made, not just when the work happened.

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Exclusions

Read what's excluded, not just what's covered. Sub-contractor work, specific activities, or work carried out overseas are common gaps.

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FCA authorisation

Before buying, confirm any insurer or broker is authorised and regulated by the Financial Conduct Authority — check the register at register.fca.org.uk.

🤝 We're finalising partnerships with FCA-authorised UK insurers so you can compare real quotes here soon. Check back shortly, or get in touch if you'd like to be notified when comparisons go live.

FAQ

Frequently Asked Questions

It covers claims that a product you manufactured, imported, branded, or supplied caused injury to a person or damage to their property. It typically doesn't cover damage to the defective product itself, or pure financial loss unconnected to injury or property damage.

Retailers and distributors can also face claims, particularly if they can't identify who supplied the product to them within a reasonable time. Many retailers carry product liability cover for this reason, even though they didn't make the product themselves.

They're closely related — both cover third-party injury or property damage — which is why insurers often sell them together as combined liability cover. Product liability specifically addresses harm caused by a product, rather than an incident on your premises or during your work.

Under the Consumer Protection Act 1987, an injured party doesn't need to prove the producer was negligent — only that the product was defective and caused the harm. Defences do exist, but the starting position is stricter than a typical negligence claim.

Not usually as standard — product recall costs are often a separate, specific add-on or policy, since recalling stock proactively is a different risk from responding to a claim after harm has occurred. Check explicitly if recall cost cover matters for your business.

Potentially yes — "own-branding" a product made by someone else can make you liable as if you were the producer, regardless of who actually manufactured it, which surprises many businesses that see themselves purely as a brand or retailer.

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