Product liability insurance for goods you make, sell or supply

A customer’s allegation, your legal responsibility and the insurer’s decision about cover are separate questions. Liability for harm to others also differs from the value of the supplied item itself.

Check how the wording defines products and the work involved in supplying them. Making goods is not the only role worth considering, but different participants in a supply chain do not automatically have identical responsibilities.

A refund request alone does not establish an insured liability claim.

Retailers and online sellers

Describe what you sell, where it comes from, who uses it and where you send it. Selling rather than making a product does not, by itself, decide your responsibility for a claim.

Marketplace participation or a supplier’s insurance does not automatically insure your own business. Check the parties and activities included in the proposed cover.

Makers, assemblers and own-brand businesses

Explain your materials, design, manufacturing, assembly and branding responsibilities, including work done by others on your behalf.

Small-scale or handmade production does not itself establish an exemption or cover. Describe any food, cosmetics, toys, electrical or other specialist goods and confirm their inclusion.

Importers and overseas supply chains

Explain who sources, imports, brands and supplies the goods, and where they go. Importing and own-brand responsibilities can overlap but are not interchangeable. Check the product range, roles covered and markets.

Legal definitions and obligations can differ between territories and product regimes. Do not assume one description of an importer applies everywhere, or that an international supply chain is automatically accepted.

Covered compensation liability and relevant defence costs may be included, subject to the terms, limits and approval requirements. This does not promise payment for every allegation, legal bill or contractual obligation.

The following are original hypothetical examples, not real claims or confirmations of cover.

Example: a retailer faces an injury allegation

Business role: A shop sells a household storage unit.

Allegation and harm: A customer says a component failed and injured them.

Policy questions: Are the product and retail role included? Who supplied or assembled it, what happened and which restrictions apply? The allegation does not itself prove a defect or legal responsibility.

Useful evidence: Product/batch identification and assembly information, alongside relevant supplier and purchase records.

Example: a maker faces a property-damage allegation

Business role: A small maker designs and sells a decorative item.

Allegation and harm: A customer alleges a defect damaged nearby furniture.

Policy questions: Are those goods and responsibilities covered? How do the terms treat damage to other property compared with refunding or replacing the item itself?

Useful evidence: Materials, production and design records, with safe photographs where relevant.

Example: imported own-brand goods allegedly damage flooring

Business role: A business imports an own-brand domestic fitting for resale.

Allegation and harm: A buyer says a failure damaged their flooring.

Policy questions: Does the description include the importing and branding roles, goods and markets? Check the importing and branding responsibilities separately against the relevant markets and actual circumstances.

Useful evidence: Traceability, source and sales destinations, and records of the alleged flooring damage.

A visitor tripping at your premises raises a different question from injury allegedly caused by goods you supply. The distinction is not simply inside versus outside the shop, or before versus after a sale.

Public and product liability can be combined, but a policy title or public liability certificate does not establish all the products and responsibilities you need insured. Use the public versus product liability guide for the full comparison and the public liability insurance page for that cover.

Do not assume it pays for every cost involving a faulty product. Separate compensation for injury or damage to other property from:

• refunds, repair or replacement of the defective item;
• checking other goods or batches;
• withdrawal, recall and customer notifications;
• destruction or replacement of stock.

Which recall or withdrawal costs are covered or excluded? Is additional cover under the policy (sometimes called an extension) or a separate arrangement needed? What approval and conditions apply? Read the actual exclusions, exceptions and amendments; do not assume ordinary product liability pays these costs or a specialist arrangement covers every expense.

Product liability is not a performance warranty, stock insurance or blanket cover for financial loss without injury or property damage. Check contractual promises, advice/design responsibility and known problems where relevant.

Product-safety action: If goods may be unsafe, do not wait for the insurer’s decision about cover before checking and taking required action. Follow the official rules for the actual goods and markets. Notifying the insurer does not necessarily complete authority reporting; this page is not a recall procedure.

Check	Question to resolve
Goods and roles covered	Are your making, selling, importing and branding activities included?
Limit basis	Does the limit apply per claim, event or another defined basis, and who shares it?
Aggregate	Which claims share a total limit during a defined period?
Products and batches	Can related allegations share a limit or excess?
Defence costs	How are defence costs covered, limited and approved?
Claimants’ legal costs	How are costs you become liable to pay covered and limited?
Excess	Which losses and costs require a contribution from your business?
Territories and courts	Where can goods be supplied or used, and where can claims be brought?
Product history	What applies to previous supply, discontinued goods and changed activities?

Check how the policy treats the dates of supply, injury or damage, the allegation and insurer notification. Insurance held when an item was sold does not by itself establish which policy may apply to a later problem, and discontinued goods do not automatically end all exposure.

Check these separately:

• source country;
• sales/export destination;
• product-use location;
• courts where claims may be brought.

An aggregate is a total limit shared across specified claims during a defined period. An excess is the amount your business must contribute towards a claim where required. Ask whether defence costs and claimants’ legal costs use a relevant limit and what approval/conditions apply. Online sales do not establish worldwide or US/Canada cover. Nor does each product, batch or customer automatically receive a fresh full limit.

Read the wording/version, schedule recording specific selections and endorsements changing the terms together. If a summary is silent, record “not stated; ask” and obtain clarification. The limits and excesses guide explains limit bases, contributions and related checks.

It is not a general compulsory purchase for every UK business selling goods. Check any sector-specific, regulatory or contractual requirement and the territories in which you operate; a customer or stockist may require cover.

The insurance question is separate from supplying safe and compliant goods and from possible liability if harm occurs. Insurance does not certify compliance or replace applicable testing, safety-information or traceability obligations. A safety marking or supplier certificate is not proof of insurance or a complete defence.

Use GOV.UK’s manufacturer and importer safety guidance and the rules for your actual products and markets. Great Britain and Northern Ireland can differ. The legal-requirements guide explains the wider insurance distinctions.

Standalone and combined options depend on the provider and goods. Ask whether product liability is included, which goods and roles it covers, and whether another section must be bought alongside it. A combined policy is not automatically cheaper or complete.

The price depends on the actual business and proposed terms. The provider may consider:

• goods and intended users, to understand the potential harm;
• your business’s role and markets, to assess responsibilities and geographical scope;
• requested turnover/export figures and history, to understand the business described;
• selected cover and limits, to establish the protection being priced.

These are prompts, not a universal rating formula. A public liability or combined-package headline price is not a product-only estimate for your goods. Compare the actual cover, total payable and payment terms; a quote does not guarantee acceptance or a future price.

Gather the following information for the insurer or broker. This is a checklist, not a form to submit to Clearcut.

Area	Information to prepare or confirm
Business	Correct business, activities and supply-chain roles.
Goods	Range, materials, intended uses/users and significant changes.
Responsibilities	Who designs, makes, assembles, imports, brands, repairs or supplies.
Markets	Source countries, destinations, exports and relevant contract jurisdictions.
Business figures	Measure, categories and period requested for turnover or other splits; label estimates and actuals.
Supporting records	Supplier identity, traceability, instructions, testing and quality details as requested.
Contracts and limits	Customer requirements and the proposed amount and basis of cover.
History	Requested claims, potential problems and discontinued-product details.
Proposed terms	Goods and roles covered, sections, restrictions, costs, limits and excess.
Unresolved questions	Written clarification, agreement/effective date and relevant documents.

When arranging business insurance, fair presentation can require more than answering application questions. Disclose material information your business knows or ought to know. Ask the insurer or broker if you are unsure what to provide.

You could ask:

We [make/sell/import/brand] these goods for these uses and markets. Are these goods and roles included? How should they be described, which sections apply and what territorial or other restrictions remain?

Use the business insurance quote checklist for broader preparation. Send necessary information through the insurer’s or broker’s appropriate secure channel. A submission, acknowledgement or quotation alone does not confirm active cover.

For an existing allegation, promptly follow the actual policy’s reporting requirements; the claims guide explains the process.

For a safety concern, check the applicable official product-safety process using the GOV.UK guidance above. Notifying one organisation does not necessarily complete the other process. A new quote or message to Clearcut is neither insurer notification nor regulatory reporting.

For future insurance questions, ask an insurer or broker about your actual goods, roles and markets.