What is products liability insurance?

Product liability insurance is designed to protect your business for the compensations costs made by clients and customers as a result of a fault of the product you have provided them with. It also covers all the cost of compensation claims if a member of the public is injured or their property is damaged by your product.

You are likely to be liable if you manufacture and sell the products. However, please note that you may be liable even if you have not manufactured the product. This is particularly important if the manufacturer has gone out of business, or operates outside of the European Union.

Do I need products liability insurance?

As mentioned above, you don’t necessarily need to be the manufacturer of the product in order to purchase this cover. Importing, reselling, repairing or refurbishing can sometimes be enough to make you liable. You might want to consider purchasing product liability insurance if your business falls under the following categories:

• You manufacture products.
• You commission the manufacture of a product and your business name appears on it.
• You use materials and components supplied from outside the EU.
• You use materials and components from unidentified manufacturers.

Am I required by law to have products liability insurance?

This insurance cover is not a required by the authorities, but it is common practice that other businesses you work with will require you to be a cover holder. It is also worth considering the fact that you can be sued if you are found liable for any injuries, damages or death caused by the products you sell.

Cover information

• £5,000,000 any one occurrence, unlimited in the period of insurance
• £5,000,000 any one occurrence and in the aggregate in the period of insurance in respect of products liability and pollution
• Legal defence costs and expenses payable in addition to the limit of liability
• Option to increase limit of indemnity to £10,000,000

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Need more help? Call us on +44(0)20 7889 2900 or contact us via email at qoutes@hattonandberkeley.com