Products Liability Insurance
If a product you sell, supply or manufacture causes injury or damage, the legal and compensation costs can be substantial. Products liability insurance protects your business from these claims.
Get in touchWhat is products liability insurance?
Products liability insurance covers your business if a product you manufacture, supply, sell or distribute causes injury to a person or damage to their property. It pays for your legal defence costs and any compensation or settlement awarded against you, up to the limit of your policy.
Under the Consumer Protection Act 1987, producers, importers and own-brand suppliers can be held strictly liable for defective products, meaning a claimant does not need to prove negligence. This makes products liability a significant risk for any business in the supply chain.
Even if you believe your products are safe, defects can emerge in manufacturing, packaging or labelling. A single product liability claim can involve multiple injured parties and run to very large sums, making insurance essential for any business involved in getting products to market.
What is covered
- Injury caused by a defective product
- Property damage caused by a product
- Legal defence costs
- Compensation and settlement costs
What is not covered
- Product recall costs
Usually requires a separate product recall policy
- Damage to the product itself
Products liability covers third-party harm, not the faulty product
Who needs products liability insurance?
Manufacturers
Any business that makes products, from food producers to electronics manufacturers
Importers and distributors
Businesses importing products into the UK or distributing them to retailers
Retailers
Shops and online sellers, including those selling under their own brand
Food and drink businesses
Restaurants, bakeries, food trucks and anyone preparing or selling food to the public
Cosmetics and beauty product sellers
Businesses selling products applied to the body, where adverse reactions can occur
WHY CECIL
Built differently.
UK specialists
Leading UK insurers only. No American-style policies retrofitted for British businesses.
Straightforward process
Tell us about your business. We find the options. You choose. No lengthy forms, no automated runaround.
Cover that actually fits
Cover that fits how your business operates, not a generic category. Tell us what you do and get the options that actually match.
Here when it matters
When something goes wrong, you need your insurer to respond. Only insurers rated for their claims handling.
Common questions about products liability insurance
Is products liability insurance a legal requirement in the UK?
Products liability insurance is not a specific legal requirement in the UK. However, under the Consumer Protection Act 1987, businesses can be held strictly liable for injuries or damage caused by defective products. Without insurance, you would need to pay legal costs and compensation from your own resources, which could be ruinous.
What is the difference between public liability and products liability insurance?
Public liability covers claims from third parties injured or suffering property damage because of your general business activities, such as someone slipping in your shop. Products liability specifically covers claims arising from products you have manufactured, supplied or sold that cause injury or damage after leaving your control.
Does products liability insurance cover food businesses?
Yes. Products liability insurance is particularly important for food businesses because contamination, allergen errors or foreign objects can cause illness or injury. Whether you run a bakery, a food truck or a manufacturing operation, products liability cover protects against claims from customers who become ill after consuming your products.
Does products liability cover online sellers?
Yes. If you sell products online, whether your own manufactured goods or products you have sourced from suppliers, you can still be held liable if those products cause injury or damage. This applies to businesses selling through their own website, marketplace platforms or social media channels.
Industries that need this cover
Products Liability Insurance is commonly required across these sectors.
Interested in Products Liability Insurance?
We will be in contact when Cecil launches.