Selling products carries all kinds of risks. Even manufacturers that take the most rigorous safety precautions can find that things go wrong. If an error or product defect causes injury to a customer or damage to their property, they could sue you. Claims can mean expensive lawsuits and crippling compensation payouts, which can bankrupt even a larger company.
Product liability insurance is one of the most popular types of commercial insurance policies among businesses. It’s not a legal obligation, but many suppliers and retailers won’t enter into a contract with you without it. To make your search that bit easier, we’ve compiled a list of popular insurance providers offering product liability cover.
Aviva
A very well-known provider in the insurance industry is Aviva. While they don’t offer standalone product liability cover, they do offer it under their public liability policies. They provide a limit of up to £5 million, which insures the company against claims relating to personal injury or damage to property. It excludes injury to employees, which would require separate employer’s liability cover.
Hiscox
Companies looking for a higher level of cover should consider Hiscox, who provide up to £10 million of protection and legal defence costs of up to £100,000. Their product liability insurance works in conjunction with their public liability cover, usually under the same policy. Their cover is suitable for a wide range of businesses, including manufacturers, suppliers and retailers. A policy covering public liability and product liability will set you back as little as £55 a year.
Direct Line
Direct Line offers a flexible policy, providing cover for products sold online as well as in stores. You can make amendments to your cover without paying any admin fees, and will also have the added benefit of access to specialists seven days a week, either online or over the phone. They, too, offer a higher level of cover of up to £10 million. Finally, they offer a price guarantee, promising to beat new business insurance quotes or renewal premiums from any other insurers – and you can even get a 10% discount if you are already a Direct Line customer.
Zurich
Another provider offering product liability insurance together with public liability cover, is Zurich. You can tailor your policy to suit your specific needs, and choose from a variety of additional options to extend your cover. Some of these include crisis containment, which includes PR advice and assistance in the event of a crisis, to limit any reputational damage. You can also choose to add on product recall insurance, in the event of a retailer or manufacturer having to recall a whole product line.
Ageas
Product liability insurance is available through Ageas as part of their public liability insurance and other combined insurance products. They offer tailored insurance packages available for a variety of trades and businesses, with specific policies relating to particular professions.
It’s available to both sole traders and bigger businesses but is particularly useful for smaller companies looking for a single comprehensive policy featuring multiple cover options, such as employer’s liability and personal accident insurance. Their cover is only available through a broker, but you will benefit from 24/7 help and support if you take out a policy with them.
Towergate Insurance
Rated 4.6 out of 5 by over 8,000 reviews on Feefo, Towergate Insurance offer flexible levels of cover starting with £1 million, with options to extend to £2 million, £5 million or even £10 million. Their trained advisors are available to offer guidance on the extent of cover you need. Their product liability cover also covers legal costs, both for you and the claimant, if you’re found to be at fault. You can take out a policy with them whether you’re a wholesaler or manufacturer, and they offer insurance for products sold outside of the UK, too.
Covea
Covea offers product liability insurance as part of their combined packages, together with public liability cover and other features, tailored to particular industries and professions. They offer up to £5 million of protection, including injury and damage to property and legal and compensation costs. They’re well-suited to smaller businesses, but you can only take out a policy with them through a broker.
Markel
Another provider combining public and product liability insurance is Markel. This highly rated insurance provider currently insures over 200,000 micro-businesses and boasts 25 years of experience in the industry. They offer cover from as little as £5 a month – you can get a quick quote online in just a few minutes. They provide cover levels varying from £1 million to £5 million, which will cover injury, damage to property, legal fees and compensation costs. You can purchase a policy directly from Markel, by interest-free direct debit.
AIG
If you’re looking for standalone product liability insurance, you can find a policy with AIG. If you wish, you can also combine employers’ liability or public liability with your policy. Their cover is available to UK-based businesses of any size, working in any sector, including multinational companies.
In addition to £5 million of cover for product liability claims, they also offer up to £50,000 for product recall due to government recall, product defect or malicious product tampering. They also offer up to a limit of £150,000 for crisis containment, offering expertise to help companies deal with the aftermath of a severe incident.
RSA
One of the few insurance providers who can offer global coverage is RSA. They are only available through a broker but offer a combined package called the Risk Managed General Liability policy, which includes both public and product liability. The policy can cover you against injury, damage to property as well as financial loss. They also offer crisis management response and support to assist clients following a claim.
