Product Liability Insurance – What is it and Why do you need it?

What is Product Liability Insurance?


Product Liability Insurance isn’t a legal requirement. But if you own a business that designs, manufactures or supplies products you are likely to have a legal responsibility to the general public to make sure that they are safe. If you are found liable for injury, damage or death caused by one of your products, you may be sued.

Product Liability Insurance can cover the cost of compensating anyone who is injured by a faulty product that your business designs, manufactures or supplies.

You’re likely to be legally liable to pay compensation costs if you manufacture the products you sell. But you could also be liable if the products displays the name of your business or if you have repaired them. In addition to this you may also be liable if the manufacturer can’t be traced, has gone out of business, or is outside the European Union.

So it’s important to ensure that you’re covered should a member of the public be injured as a result of a faulty product that your company has provided.

Product Liability Insurance is a means of protecting your business should the customer incur damages as a result of a fault with the product that you have provided them with.


Do you need Product Liability Insurance?

Product Liability Insurance can be an essential cover for any business that designs, manufactures or supplies products.

Your business may be held legally responsible for any injuries to people or damage to property caused by a faulty product. Even if you did not manufacture them you may be liable for compensation if:

  • Your business’s name is displayed on the product
  • Your business refurbishes, repairs or changes a product
  • The product was imported from outside the European Union
  • Furthermore, if the actual manufacturer has gone out of business, or cannot clearly be identified, then the seller of the product could be held liable.

Public Liability Insurance is rarely sold as a stand-alone policy. It may be bought as an add-on to a Public Liability Insurance policy. Most businesses take out policies that cover them for compensation claims of between £1 million and £5 million.


We are Experienced Insurance Brokers, based in Essex, and can help ensure you have the right level of cover.

If you would like us to talk you through Product Liability Insurance please get in touch with us. We can offer a no-obligation quote. You can contact us:

  • Through our Live Chat
  • By emailing us at
  • You can also call us on 01708 289 525