What is product liability insurance?
Product liability insurance will protect against claims arising from injury or property damage as a result of a fault with a product you have provided.
The business insurance will pay legal costs incurred in defending allegations and damages arising from any award or settlement. We've produced the guide: Product Liability Risk Management Explained 1O1
Compare product liability insurance quotes for companies which which design, manufacture or supply products, by completing our digital onboarding process
Get indemnity™ product liability
Unfortunately, mistakes and accidents occur with even the most well-designed products. Therefore, it’s important that you hold sufficient product liability insurance to protect your business.
We operate in a compensation culture with the public generally more aware of their rights. With the no win, no fee system making legal advice more accessible with no upfront costs. Product liability claims, even if they are without merit, are becoming more frequent.
At get Indemnity
™ product liability insurance can be offered from £1 million to £25+ million to meet your needs. It can also be purchased wiith professional indemnity
and public liability
to ensure you're fully protected.
Who needs product liability insurance?
Anyone who supplies products is responsible for their safety and should therefore consider product liability insurance.
Manufacture or product distribution
The level of responsibility and potential product liability will depend on whether you are involved in the manufacture of the products, or whether you are involved with the distribution.
If you're involved in the manufacturer, you hold the ultimate liability for the safety of the product you produce.
However, the below identifies circumstances where you can still be wholly responsible under product liability from injury or property damage as a result of a fault with a product:
> If you repair or repurpose a product.
> Materials are imported from outside the European Union (UK post-Brexit)
> If you commission the manufacture of a product.
> If your business name or trademark appears on the product.
> Materials are from a supplier who is no longer in business or is unidentifiable.
> The supplier has a hold harmless agreement that indemnifies their liability.
How do insurers calculate your product liability cost?
To calculate your product liability cost, insurers consider the type of products being produced, where materials are sourced and where you are sending finished goods.
Exporting to the USA or Canada
Products sent to the USA or Canada can increase your product liability cost due to the size of the compensation awarded provided by the courts.
Products produced in Asia
Materials or products produced in Asia and other countries can restrict your ability to hold the supplier to account and increase your product liability cost.
Safety critical goods
Safety critical goods such as toys, electrical goods, machinery, fireworks, food and medicines carry an increased risk should they fail when being used.
Perishable goods such as food or medication can easily be destroyed in transit or be ineffective once sold if not stored correctly.
Product liability covers and definitions vary, therfore it's worth working with a specialist product liability insurance broker to ensure the cover best meets your needs.
How much product liability insurance should you buy?
The amount of product liability insurance you purchase will depend upon your activities, products, perception of the exposure and how much you are prepared to spend to mitigate the risk.
The type of products you produce will likely impact your decision. For example, if you are a clothing manufacturer, the risk of product liability from injury or damage to property is far less than if you are a fireworks manufacturer.
Minimum amount of product liability cover
The minimum cover typically offered is a £1 million limit. However, the product liability risk of personal injury is significant, therefore businesses typically purchase a minimum of £5 million or £10 million.
How to compare product liability insurance quotes?
Product liability insurance quotes can typically be made available with 48 hours of completing our online application
However, every manufacture, wholesaler or distributor business model is different, and we may require further information dependent upon your business activities.
At get indemnity™ we continue to see stable market conditions for product liability insurance cost, driven mainly by an abundance of insurer capacity.
If you operate in a higher risk area or you've had recent claims activity, we recommend you engage with your product liability insurance broker early to achieve a satisfactory renewal.
This guide is for information purposes and based on sources which we believe are reliable, the general risk management and insurance information is not intended to be taken as advice with respect to any individual circumstance and cannot be relied upon as such.