Product liability insurance
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If your business supplies, installs, repairs or provides products as part of your work, product liability insurance can help protect you if something goes wrong.
From fitted products and components to goods supplied alongside your services, the right cover can help protect your business against unforeseen costs if a product causes injury or damage.
On this page
- What is product liability insurance?
- What does product liability insurance cover?
- Who needs product liability insurance cover?
- Do I need product liability insurance?
- Product liability insurance vs public liability insurance
- What product liability insurance doesn't cover
- How much product liability insurance do you need?
Product liability insurance protects businesses if a product they supply, install or provide causes accidental injury or damage to property.
For tradespeople, this could apply where you supply products as part of your work, rather than only providing a service.
For example, you might:
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Supply and install products for customers
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Fit components or materials as part of a project
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Install, repair or service products
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Provide goods alongside your trade services
If a product you are responsible for causes injury or property damage, product liability insurance can help protect your business against the costs of a successful claim.
Accidental injury caused by products
If a product you supply causes accidental injury to someone, product liability insurance can provide protection where your business is legally responsible.
Examples could include:
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A supplied product causing injury after installation
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A component you provide failing and causing harm
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A product you installed or repaired causing accidental injury
Accidental damage caused by products
If a product you supply causes accidental damage to property, product liability insurance can provide protection where your business is legally liable.
Examples could include:
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A supplied product damaging a customer's property
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A faulty component causing damage after installation
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A product you have supplied failing and affecting surrounding property
Legal defence costs
Where covered under the policy, legal defence costs may be included when defending a product liability claim.
Product liability insurance cover is subject to the policy terms, conditions and exclusions.
Who needs product liability insurance?
Product liability insurance may be relevant for businesses that supply, install, repair or provide products as part of their work.
This can include:
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Tradespeople supplying products alongside their services
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Installers fitting products for customers
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Businesses repairing or servicing products
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Contractors responsible for products they provide
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Small businesses selling goods connected to their trade
Examples of trades where product liability cover may be relevant include:
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Kitchen installers supplying units or components
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Glaziers installing windows or glass products
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Builders supplying fitted products or materials
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Electrical contractors supplying equipment
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Plumbers supplying fixtures or components
Product liability insurance relates to damage or injury caused by products you supply, install or fit. It does not cover the cost of the products themselves or any materials supplied for a project, which would fall under contract works cover if included in your policy.
Whether you need product liability insurance depends on the products you provide, the work you carry out and the nature of your business.
Do I need product liability insurance?
Product liability insurance is not usually a legal requirement in the UK.
However, it may be relevant if your business supplies, installs or repairs products that could cause injury or property damage.
You may face liability if:
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Your business name appears on a product
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You repair, refurbish or service a product
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You cannot identify the original manufacturer
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The manufacturer is no longer trading
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You supply a product as part of your service
For many tradespeople, product liability insurance provides additional protection alongside public liability insurance.
Product liability insurance vs public liability insurance
Product liability insurance and public liability insurance both protect businesses against third-party claims, but they cover different types of risks.
The key difference is whether the issue comes from your work or services, or from a product you have supplied.
|
Public liability insurance |
Product liability insurance |
|
Covers claims linked to your work, actions or services |
Covers claims linked to products you supply, install, repair or provide |
|
Can provide protection if someone suffers injury or property damage because of your business activities |
Can provide protection if a product causes accidental injury or damage to property |
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Often applies while you are carrying out work for customers |
Applies where a product is the cause of the injury or damage |
For example:
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If you accidentally damage a customer's property while carrying out work, public liability insurance may apply.
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If a product you supply causes injury or damage down the line, product liability insurance may apply.
Some trade businesses choose product liability insurance alongside public liability insurance to provide broader protection for the different risks they may face.
What product liability insurance doesn't cover
Understanding what product liability insurance covers is important, but it is just as important to understand what is not included.
What can’t be covered
Product liability insurance does not typically cover:
✘ The cost of replacing, repairing or recalling a faulty product
✘ Guaranteeing that a product will perform as intended
✘ Professional advice provided for a fee or where a fee would normally be charged
✘ Injury to employees (this usually falls under employers' liability insurance)
✘ Products that remain in your custody or control
✘ Fines, penalties or contractual damages
✘ Deliberate acts or intentional damage
Always check your policy wording for the full terms, conditions, exclusions and limitations that apply.
How much product liability insurance do you need?
The level of product liability cover you need depends on your business, the products you supply and the risks involved.
Factors that may affect your requirements include:
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The type of products you provide
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Whether you manufacture, supply, install or service products
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The number of products supplied
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Where your products are used
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The contracts you work under
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Any requirements set by customers or suppliers
The right level of cover will depend on your individual circumstances.
Product liability cover is available up to £5 million.
How much does product liability insurance cost?
The cost of product liability insurance varies depending on the type of business you run and the products you provide.
Factors that may affect the cost include:
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Your trade or profession
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The products you supply or install
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Your business activities
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Your turnover
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Your claims history
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The level of cover selected
Because every business is different, you'll receive a personalised quote based on your circumstances.
Your product liability insurance cover options
Product liability insurance is included automatically with your public liability insurance. The level of product liability cover matches the level of public liability cover you choose.
So, if you select £5 million of public liability insurance, your product liability cover will also be £5 million.
Our liability cover options are designed for tradespeople and small businesses that supply, install or work with products as part of their services.
Essentials
Our Essentials package offers straightforward cover for your business. It includes public liability insurance and third party financial loss cover.
- Public liability insurance up to £5 million
- Third party financial loss cover up £100,000
- Employers' liability insurance up to £10 million can be added to your package
Classic
Our Classic package builds on Essentials, adding professional indemnity cover, capital death benefit and tools cover.
- Public liability insurance up to £5 million
- Professional indemnity cover of £100,000
- Third party financial loss cover of £100,000
- Capital death benefit
- £1,000 of tools cover, which can be increased up to £15,000
- Employers' liability insurance up to £10 million can be added to your package
Plus
Our Plus package builds on Classic by adding temporary total disablement benefit. It offers our widest level of cover.
- Public liability insurance up to £5 million
- Professional indemnity cover of £100,000
- Third party financial loss cover of £100,000
- Capital death benefit
- £1,000 of tools cover, which can be increased up to £15,000
- Temporary total disablement benefits up to £600 a week per person
- Employers' liability insurance up to £10 million can be added to your package
Optional Extras
Looking for additional cover? You can add the following to your policy:
- Contract works
- Owned plant
- Hired-in-plant
- Stock in transit
- Jury service cover
Fixed price, fixed peace of mind
Lock in your insurance price for two full years with Trade Direct Insurance’s Price Freeze on Classic and Plus policies.
Whatever your trade, work can be unpredictable. Your insurance price doesn’t have to be.
When should I get product liability insurance?
Product liability insurance may be relevant when your business starts supplying, installing or providing products as part of your service.
You may want to consider product liability cover when:
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You begin supplying products to customers
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You add products to your existing services
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You start installing products on behalf of customers
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Your business expands into new types of work
Your cover begins from the date you select when taking out your policy.
Public liability insurance
Public liability insurance can protect your business if a customer, visitor or member of the public claims they suffered injury or property damage because of your work.
For many tradespeople, product liability insurance works alongside public liability insurance to provide broader protection for different risks.
Professional indemnity insurance
If your business provides advice, recommendations, specifications or designs as part of your service, professional indemnity insurance may be relevant.
Professional indemnity insurance can provide protection if a customer alleges your professional services caused them financial loss.
Employers' liability insurance
If you employ staff, employers' liability insurance may be required by law in certain circumstances.
This cover can protect your business if an employee suffers a work-related injury or illness and your business is found legally liable.
Get your product liability insurance quote today
If your business supplies, installs, repairs or provides products as part of your work, product liability insurance can help protect you if those products cause accidental injury or damage to property.
Whether you’re a self-employed tradesperson or run a growing business, we offer liability cover options designed around the way you work.
✔ Underwritten by Zurich Insurance Company Ltd.
✔ Public and product liability insurance up to £5 million
✔ Employers' liability insurance up to £10 million available
✔ Tools cover up to £15,000
✔ Temporary total disablement benefit up to £600 per week
✔ Third Party Financial Loss cover included
✔ Save 10% with B&Q TradePoint
✔ UK-based expert telephone support
✔ Fast online quote experience
✔ Cover for over 70 recognised trades