What is Product Liability Insurance?

Product Liability Insurance is designed to protect companies from financial loss if a product they manufacture, supply, or sell causes injury, illness, or property damage. This insurance covers legal costs and compensation claims if a third party is harmed by a product defect, a labelling error, or inadequate safety instructions.

Essential for any business involved in producing or distributing physical goods, Product Liability Insurance helps protect your business’s finances and reputation.

What does product liability insurance cover?

Product Liability Insurance covers various scenarios where your product may cause harm or damage. Typical cover includes:

• Property Damage: If a product malfunctions or is defective, causing damage to another person’s property, product liability insurance covers the costs associated with repairs or replacements.
• Bodily Injury: If a customer or third party is injured while using your product, this insurance can cover relevant recovery costs, rehabilitation, and compensation.
• Legal Fees: This insurance also covers the legal costs involved in defending your business against a claim, which can be substantial if the case goes to court.
• Settlements and Compensation: If a court rules in favour of the claimant, this insurance helps cover any settlement or compensation awarded, saving your business from potentially crippling financial losses.

Do I need product liability insurance?

If your business manufactures, supplies, distributes, or sells physical products, you should strongly consider Product Liability Insurance. Even if your business only supplies products made by others, you may still be held responsible if the product causes harm.

Product Liability Insurance gives you peace of mind, knowing you’re protected from unforeseen claims.

How much product liability insurance do I need?

The amount of product liability insurance you need depends on several factors, including:

• Industry risk level: High-risk industries, such as those involved in manufacturing electronics, chemicals, or medical devices, may require higher cover limits.
• Product type and volume: Businesses with a large product line or those distributing high-value goods may benefit from increased cover.
• Potential exposure: The scale and reach of your product distribution also play a role. For example, if your products are distributed internationally, you may face higher liability risks.

Our experienced advisers can assess your business needs to determine an appropriate level of cover, helping ensure you’re fully protected without over-insuring.

Why choose Acer Insurance for Product Liability Insurance?

Acer Insurance is an established independent insurance broker, we have been arranging both personal and commercial insurance policies for more than 25 years. Our insurance brokers apply their market knowledge to find cost-effective solutions tailored to your specific insurance needs. We excel at finding innovative answers for unusual, challenging and unique insurance requirements. Expertise, integrity and personal service underpin everything we do.

Contact us for a quote today

Call 01959 528435 for an immediate quotation or leave your details below and one of our experienced team members will call you back.