What is Product Liability Insurance?

Product liability insurance covers claims for personal injury or property damage caused by a defective product that a business supplies, manufactures or designs. It is not a legal requirement in the UK, but is strongly recommended for any business in the supply chain for physical products — including retailers, importers and own-label suppliers. It is often sold as part of a combined public and product liability policy. The Consumer Protection Act 1987 makes producers strictly liable for damage caused by defective products, meaning fault does not need to be proved — making this cover essential for product-based businesses.