Products Liability Insurance. Consumer Protection.
If your product injures someone or damages their property, the Consumer Protection Act can make you strictly liable. Products liability insurance protects you against these claims.
Get in touchWhat is products liability insurance?
Products liability insurance covers you if someone is injured by, or their property is damaged by, a product you manufacture, import, supply or sell. It covers legal defence costs and compensation claims.
Unlike negligence law, the Consumer Protection Act 1987 imposes strict liability, which means you can be held liable even if you did nothing wrong — only that the product was defective.
Products liability is essential for any business supplying physical products, whether you make them, import them from overseas, or simply resell them.
What is covered
- Personal injury claims from defective products
- Property damage caused by defective products
- Legal defence costs
- Compensation awards
What is not covered
- Product recall costs
Not included in standard products liability — separate product recall insurance required
- Damage to the product itself
Not covered — this is a warranty matter
Who needs products liability insurance?
Manufacturers
Businesses that make products and supply them to customers
Importers
Businesses that import products from overseas for UK sale — treated as manufacturers under Consumer Protection Act
Wholesalers and distributors
Businesses that buy and resell products without modification — still face products liability
E-commerce sellers
Anyone selling physical products online
How much does products liability insurance cost?
£150 – £600 per year for most small product-based businesses; food manufacturers and importers may pay £400 – £2,000+ depending on turnover and product type
Product type and hazard level
high impactFood, pharmaceuticals, children's toys and electrical goods are considered higher risk than, say, clothing or stationery. Insurers rate heavily on the injury potential of the product.
Annual sales turnover
high impactHigher turnover means more products in circulation and therefore greater aggregate exposure. Premiums typically scale with the total value of products sold.
Whether you manufacture, import or resell
medium impactManufacturers carry the highest exposure under the Consumer Protection Act. Importers of goods from outside the UK can be treated as manufacturers in law. Resellers face lower exposure but still need cover.
Export markets
medium impactSelling into the US or Canada significantly increases your risk profile due to higher potential claim values in those jurisdictions. Some UK policies exclude American claims or charge substantially more to include them.
WHY CECIL
Built differently.
Understand strict liability
Many businesses do not realise they can be liable for a defective product even if they were not negligent. Strict liability is harsh, which is why products liability cover is essential.
Right cover for your product type
Food and children's products face higher risk than stationery or textiles. Your premium reflects your actual product risk, not a generic rate.
Specialist knowledge of imports
If you import products, you are treated as a manufacturer under UK law. We make sure your cover reflects this liability.
Transparent about what is covered
We explain exactly what products liability covers and what it does not — including why product recall insurance is separate and important.
Real claims: what products liability insurance covers
A bakery's gluten-free product is contaminated with gluten, causing a severe reaction in an allergic customer
The products liability policy covered the customer's compensation claim, medical costs and legal defence
£31,000 total claim
An electrical product imported from abroad causes a house fire at a customer's home
The policy covered the property damage claim and personal injury claim from the homeowner
£95,000 total settlement
A cosmetics brand's face cream causes an allergic skin reaction in multiple customers
The products liability policy covered the compensation claims and associated legal costs across three claimants
£24,000 total across all claims
Common questions about products liability insurance
What is products liability insurance?
Products liability insurance covers legal costs and compensation claims if someone is injured by, or their property is damaged by, a product you manufacture, import or sell. It covers claims made under the Consumer Protection Act 1987 or negligence law.
How much does products liability insurance cost?
Cost depends on your product type, annual turnover and whether you sell domestically or export. Basic cover for a small manufacturer might cost £150–£400 per year; higher-risk products such as food or electrical goods can cost £500–£2,000+ per year.
Do I need products liability insurance if I only resell products I did not make?
Yes. Even as a reseller, you can still face liability claims if you supplied a defective product. Under the Consumer Protection Act, liability can fall on importers and resellers in certain circumstances.
What is strict liability under the Consumer Protection Act 1987?
Under the Consumer Protection Act 1987, you can be held liable for injury or damage caused by a defective product even if you were not negligent. This is known as strict liability. A claimant does not need to prove you did anything wrong — only that the product was defective and caused the harm.
Does products liability insurance cover product recalls?
No. Product recall is a separate and distinct coverage. Products liability covers compensation claims made by injured parties; it does not cover the cost of recalling and disposing of defective products. If recall risk is relevant to your business, ask about standalone product recall insurance.
Does products liability cover sales through online marketplaces?
Yes, if your policy covers your product sales generally. However, some marketplaces may require you to name them as an additional insured. Check your policy wording and the marketplace's requirements.
What is the difference between products liability and product recall insurance?
Products liability covers compensation claims made by people injured or harmed by your product. Product recall insurance covers the cost of recalling, retrieving and disposing of defective products from the market. They are complementary but separate covers.
Does products liability cover goods exported to the USA?
Not automatically. US claims are often excluded from standard UK products liability policies or carry separate sublimits. If you export to the US or Canada, check your policy explicitly includes those territories.
Does products liability insurance cover food products?
Yes. Food manufacturers, importers and retailers are covered by products liability for injury caused by contaminated or defective food. Food allergies, foreign bodies and contamination are typically covered perils.
What is a defective product under the Consumer Protection Act?
A product is defective if it does not offer the safety generally expected, having regard to presentation, instructions, and the public's reasonable expectations. This is a broad definition and covers design defects, manufacturing defects and failure to warn.
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.